A New York federal judge on Thursday appointed Cohen Milstein Sellers & Toll PLLC and Levi & Korsinsky LLP to lead a putative class of Credit Suisse investors alleging the bank misrepresented the value of certain short-term notes during a critical time of steep price drops and substantial investor losses.
Before selecting the firms’ investor group as lead plaintiff, U.S. Magistrate Judge Sarah Netburn first found that three separate securities class actions — two from March and a third from May — should be consolidated, as each asserted substantially similar claims against Credit Suisse related to a 90 percent drop in the price of its Inverse VIX Short exchange-traded notes after the close of regular trading hours on Feb. 5.
Each of the four investor groups vying for appointment as lead plaintiff sought to represent a class of investors who purchased the notes in the days leading up to Feb. 5. With that in mind, the judge chose the group with the largest financial interest in the case: a set of investors she dubbed “ACM Group” that suffered a collective $14.4 million in losses from the price drop and had chosen Cohen Milstein and Levi & Korsinsky as co-lead counsel.
“Like all other class members, the ACM Group purchased the notes during the class period on the open market, allegedly relied upon the same misrepresentations, and was injured by the collapse of the value of the notes on February 5, 2018,” Judge Netburn said. “The ACM Group’s co-counsel, Cohen Milstein Sellers & Toll LLP and Levi Korsinsky, LLP, both have extensive experience representing classes in securities actions.”
“We are pleased with the court’s ruling on the lead plaintiff motion and look forward to litigating the merits of this case on behalf of our clients, the lead plaintiffs and the class we seek to represent,” an attorney for the putative investor class said in an email.
The investors are represented by Michael B. Eisenkraft, Steven J. Toll, Eric Berelovich and Carol V. Gilden of Cohen Milstein Sellers & Toll PLLC, and Nicholas I. Porritt, Adam M. Apton and Alexander Krot of Levi & Korsinsky LLP.
The complete article can be accessed here.