Credit Suisse Group AG

On February 9, 2023, Credit Suisse released its 2022 financial results, reporting customer outflows of 110.5 billion Swiss francs in the final three months of 2022. On this news, Credit Suisse’s ADS price fell $0.56, or 15.6%, to close at $3.02 per ADS on February 9, 2023.

Then, on February 21, 2023, Reuters reported that Credit Suisse’s Chairman Axel Lehmann was facing a probe regarding comments made during an interview in early December, in which he claimed that customer outflows had “basically stopped.”

On this news, Credit Suisse’s ADS price fell $0.10, or 3.3%, to close at $2.92 per ADS on February 21, 2023, thereby injuring investors.

On March 14, 2023, the Company filed its 2022 Annual Report, revealing that it had identified material weaknesses in the Company’s internal controls over financial reporting which resulted in the revision of previously issued financial statements for 2021 and 2020.

On March 15, 2023, Reuters reported that Saudi National Bank would not buy any more of Credit Suisse’s shares on regulatory grounds. On this news, Credit Suisse’s stock price fell $0.35, or 13.9%, to close at $2.16 per ADS on March 15, 2023.

Then, on March 20, before market hours, Credit Suisse announce a merger agreement with UBS, stating that “UBS will be the surviving entity upon closing of the merger transaction” and that all Credit Suisse shareholders would receive 1 share in UBS per 22.48 shares in Credit Suisse.

On this news, Credit Suisse’s stock price fell $1.04, or 53.2%, to close at $0.94 per ADS on March 20, 2022, thereby injuring investors further.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) contrary to Defendant Lehmann’s representations in December 2022, the sharp increase in customer outflows Credit Suisse began experiencing in October 2022 remained ongoing; (2) accordingly, Credit Suisse had downplayed the impact of the Company’s recent series of quarterly losses and risk and compliance failures on liquidity and its ability to retain client funds; (3) as a result, Credit Suisse had overstated the Company’s financial position and/or prospects; (4) the Company was experiencing material weaknesses with internal controls; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.