Birmingham, AL (PRWEB) July 19, 2012
Donaldson & Guin, LLC today announced that it has filed a securities class action against Credit Suisse AG, Credit Suisse Securities (USA), LLC and certain officers and directors on behalf of investors in VelocityShares Daily VIX 2x Short-Term Exchange Traded Notes.
The case, captioned Grace Trading, LLC, et al. v. Credit Suisse AG, et al., No. 12-CV-5475 (S.D.N.Y.), asserts claims under the Securities Act of 1933 on behalf of investors who purchased or otherwise acquired VelocityShares Daily VIX 2x Short Term Exchange Traded Notes, alleges that the VIX ETNs were intended to track the level of volatility in the S&P 500 VIX Short-Term Futures Index. However, on February 21, 2012, Credit Suisse temporarily suspended further issuance of the ETNs, purportedly due to internal limits reached on the size of the ETNs. As a result, the shares increased dramatically in price, trading at prices uncorrelated to the VIX Index.
On March 22, 2012, the VIX ETNs decreased in price by over 29% as market rumors surfaced that Credit Suisse might begin reissuing the shares. That same day, even though volatility in the S&P 500 increased, Credit Suisse announced that it would begin reissuance, and, on March 23rd, the VIX ETNs plummeted in price by another 30%, resulting in disastrous losses to investors. The Complaint alleges that during the Class Period, Credit Suisse violated the Securities Act by making material misstatements and omissions regarding risks associated with the VIX ETNs in offering materials. A copy of the complaint is available at http://www.dglawfirm.com.
If you wish to serve as lead plaintiff for the case, you must file a motion with the Court no later than July 24, 2012. Any member of the proposed class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the class.
The plaintiffs are represented by Donaldson & Guin, LLC, a firm located in Birmingham and Chicago. If you wish to discuss this action, please contact David Guin at davidg(at)dglawfirm(dot)com.
Donaldson & Guin has extensive experience in securities litigation, including prosecuting class actions and private actions on behalf of institutional investors and individuals clients across the country. More information about Donaldson & Guin can be found online at http://www.dglawfirm.com