Builders FirstSource, Inc. (BLDR)
Whether directors and officers of Builders FirstSource, Inc. (BLDR) breached their fiduciary duties to the company and its shareholders.
Investigation
08/03/2020
Initial Lawsuit
01/06/2022
Lawsuit Progression
04/22/2022
Investigation following Credit Suisse’s statements of intent to delist and suspend inverse natural gas ETNs and acceleration of its option to accelerate outstanding ETNs, notably “DGAZ”, the VelocitySharesTM 3x Inverse Natural Gas ETNs linked to the S&P GSCI® Natural Gas Index ER due February 9, 2032.
08/12/2020
Credit Suisse AG announces the acceleration at its option of its VelocitySharesTM 3x Inverse Natural Gas exchange-traded notes (ENTs) traded under ticker “DGAZ” (“DGAZF” after delisting).
“Credit Suisse, as the issuer of the ETNs, may, at its option, accelerate all issued and outstanding ETNs on any business day after the inception date. . . investors will receive a cash payment per ETN equal to the arithmetic average of the closing indicative values of the ETNs during the accelerated valuation period.”
See more on Factual TimelineThis 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.
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.
04/22/2022
The court issued an order appointing the lead plaintiff and lead counsel.
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