Initial Lawsuit
First Complaint - 01/06/2022This class action is brought against Credit Suisse on behalf of all holders of exchange traded note DGAZ short positions who were caught in the “short squeeze” and purchased DGAZ notes via the OTC market, either voluntarily or involuntarily through a broker liquidation, to cover their short position in August 2020. See complaint for further information about the class period.
- Filing Date
01/06/2022 - Transgression
Securities Violation - Filing Firms
Peiffer Wolf Carr Kame & Conway, LLP
Daren A. Luma, PLLC - Case Title
Gomez v. Credit Suisse AG - Docket Number
1:22-cv-00115 - Court
New York Southern District Court - Free File
Complaint
Allegations
According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:
(i) in light of the foregoing, Credit Suisse’s decision to delist and stop further issuance of DGAZ units was made with reckless disregard for the very likely, almost certain, risk that a short squeeze and corresponding dislocation between the price of DGAZ and the S&P’s GSCI Natural Gas [ER] Index would follow;
(ii) there were simply not enough long positions available from other places to cover outstanding short obligations;
(iii) in fact, Credit Suisse was uniquely positioned to avoid a short squeeze altogether, and could have done so at all points relevant hereto;
(iv) none of this was disclosed in the June 22, 2020 press release.
Defendants
- Company
Credit Suisse AG
