Credit Suisse Group AG Agrees $70 Million Settlement in Sub Prime Risk Lawsuit

New York, NY: A $70 million settlement has been agreed by Credit Suisse Group AG which will end US securities litigation over allegations that bank miselead investors about its subprime exposure and ability to limit losses. The settlement requires court approval.

According to court papers, the settlement also covers several executives, including Chief Executive Brady Dougan. Further, the settlement allows recovery for investors who bought Credit Suisse's American depositary shares, and U.S. investors who bought Credit Suisse securities in Switzerland, between February 15, 2007 and April 14, 2008.

According to reports by Reuters, on February 19, 2008, Credit Suisse took a $2.85 billion writedown and suspended some traders who overstated the value of some assets. Its shares fell 6.6 percent that day. Then on March 20, Credit Suisse said writedowns would contribute to a surprise first-quarter loss, and its shares fell 6.4 percent.

Investors accused Credit Suisse of having previously falsely represented that its risk management and controls helped it successfully limit subprime exposure and losses.

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Published on Mar-10-11