Credit Suisse faces a U.S. class action lawsuit over $1 billion in writedowns it took in 2015 and 2016 linked to its trading division, Swiss newspaper SonntagsZeitung reported on Sunday, but the Swiss bank said the case was “without merit”.
Reutrs reports that, starting in 2015, newly named Credit Suisse CEO Tidjane Thiam and his finance chief, David Mathers, were caught off guard by the scale of their trading division’s illiquid trades. They were forced to write down their value.
Now, a class action lawsuit in New York accuses the bank, Thiam and Mathers of giving false and misleading information about risky investments that led to a drop in Credit Suisse’s share price, costing investors millions, the newspaper reported.
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