Law firm joins class action against Credit Suisse over Archegos, Greensill dealings
3:32 pm Friday, May 21st, 2021
By Brenna Hughes Neghaiwi
ZURICH (Reuters) -Law firm Frank R. Cruz said on Friday it was participating in a lawsuit against Credit Suisse over the Swiss bank’s dealings with Archegos and Greensill.
The City of St. Clair Shores Police & Fire Retirement System, based in St. Clair Shores, Michigan, in April filed a class action lawsuit against the bank in federal court in Manhattan, accusing the Swiss bank of misleading investors and mismanaging risk exposure to high-risk clients, alleging violations of federal securities laws.
Credit Suisse has been plunged into crisis after losing more than $5 billion from the collapse of U.S. investment firm Archegos and suspending funds linked to collapsed British supply chain finance company Greensill Capital. The fallout has prompted internal and external investigations, sackings and a capital raise at Switzerland’s second-largest lender, in what new chairman and veteran banker Antonio Horta-Osorio had described as his biggest challenge yet.
Its share price has fallen nearly 30% since the beginning of March, when it first disclosed issues related to its Greensill-linked supply chain finance funds.
Credit Suisse investors have until June 15 to file a lead plaintiff motion in the lawsuit.
Credit Suisse declined comment.
(Reporting by Brenna Hughes Neghaiwi, editing by Louise Heavens and Nick Zieminski)
