The proposed class action accuses Credit Suisse of deceiving investors by failing to inform that it was “suffering from significant customer outflows"
The US shareholders of Credit Suisse Group AG have reportedly sued the troubled bank, Credit Suisse amid the on-going Silicon Valley Bank (SVB) crisis. The shareholders have reportedly alleged that the Swiss Bank defrauded them by concealing problems with its finances and controls.
According to a Reuters report, the proposed class action accuses Credit Suisse of deceiving investors by failing to inform that it was “suffering from significant customer outflows.” The shareholders have also alleged that Credit Suisse did not disclose material weaknesses in its internal controls over financial reporting and this point was also raised when the bank started making headlines for a troubled nature.
The report also adds that shareholders, proposing the class action, are being led by Braden Turner. They added that the truth about Credit Suisse only became known once the Swiss bank’s biggest shareholder decided to not put in any more money and investors fled.
As Credit Suisse navigates tricky waters, the proposed class action reportedly appears to be one of the first by US investors over recent problems.
Ever since the SVB crisis has unfolded, several global investment banks have come under the scanner for various reasons, especially their troubled finances. At present, Credit Suisse has also taken financial help from the Swiss National Bank and affirmed that the bank would soon be out of trouble.