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Credit Suisse faces lawsuits from US shareholders for allegedly concealing financial woes
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Former Federal Reserve Governor Robert Heller, Solus Alternative Asset Management strategist Dan Greenhaus and Zaye Capital Markets CIO Naeem Aslam discuss the Fed’s rate hike trajectory as Credit Suisse instability threatens global markets.
Credit Suisse is facing legal action from U.S. shareholders who allege the Swiss Bank failed to disclose its financial woes and violated securities laws.
Class-action lawsuits have been filed against Credit Suisse in federal court alleging the bank made false or misleading statements about its finances and failed to adequately disclose that it suffered from a "significant" increase in customer outflows at the end of 2022. A newly filed suit includes those claims, plus a claim related to material weaknesses in Credit Suisse’s internal financial controls.
The class-action claims comments made by Credit Suisse Chairman Axel Lehmann last year implied the outflows of clients’ funds, which picked up in October 2022, had slowed.
Lehmann told the Financial Times the outflows "completely flattened out" and had actually "partially reversed" before telling Bloomberg Television the following day that such outflows had "basically stopped."
CREDIT SUISSE TO BORROW UP TO $54B FROM SWISS NATIONAL BANK