Investigation
BioXcel Therapeutics, Inc. (BTAI)
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.
Menu
Investigation
04/16/2021
Initial Lawsuit
04/16/2021
Lawsuit Progression
08/13/2021
Plaintiff brings this securities class action on behalf of all persons who purchased or otherwise acquired Credit Suisse American Depositary Receipts (ADRs) between October 29, 2020 and March 31, 2021.
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:
(a) Credit Suisse’s co-mingling of its lending, asset management, and private wealth management functions and imprudently aggressive pursuit of fees had materially diminished the company’s ability to properly assess and manage its own risk exposure to high-risk clients and potential liabilities from client losses;
(b) Credit Suisse had ignored numerous red flags in connection with the Greensill funds, such as suspicious shipment activities during an internal compliance check, and overrode the concerns of the company’s in-house credit-structuring team in packing and selling billions of dollars’ worth of Greensill-linked securities to investors;
(c) Credit Suisse had conspired with Hwang to allow Archegos to covertly take on billions of dollars in excessively concentrated and risky positions by utilizing highly leveraged total return swaps, placing the risk of loss associated with these positions on Credit Suisse and its investors;
(d) Credit Suisse was understating its exposure to risk and thus overstating its Tier 1 capital ratios in its public statements; and
(e) Credit Suisse’s internal controls were inadequate to ensure that the company’s potential liability to customers and losses arising from its exposure to customer losses were properly accounted for, managed and disclosed to investors.
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.