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A pedestrian walks by a Credit Suisse Group AG bank branch in Geneva, Switzerland, on Monday, Jan. 15, 2018. Credit Suisse was put on the defensive on the first day of the criminal trial of a former banker accused of taking millions from customer accounts as his victims demanded more information on what the lender did and didn’t do to rein in unauthorized trades.(bloomberg)
(Bloomberg) -- Claims that Credit Suisse Group AG failed to disclose material information in 2015 and 2016 are “unfounded and without merit,” the Swiss bank said.
Credit Suisse and some of its executives are accused of making alleged false and misleading statements and of failure to disclose material information, according to a statement from a U.S. legal firm filed late Feb. 9. Lawyers are making efforts to obtain class status for the lawsuit, and the court hasn’t yet made a decision on whether to grant it or not.
The Zurich-based bank had analyzed the allegations and responded to information requests from supervisory bodies during the last three years, Credit Suisse said in an emailed statement Sunday.
“All regulatory reviews were closed without any action against Credit Suisse,” it said.
Switzerland’s SonntagsZeitung reported earlier Sunday details of the proceedings.
Credit Suisse is in the final stretch of a three-year restructuring that focused the company on wealth management and investment-banking advisory services while downsizing trading, which caused surprise losses in recent years. In March 2016, Chief Executive Officer Tidjane Thiam said some of the illiquid trading positions, which caused millions of dollars worth of writedowns, had been built up without his knowledge.
Action on the lawsuit is pending in the U.S. District Court for the Southern District of New York, according to the Feb. 9 filing.
(Adds details of illiquid trade positions in sixth paragraph.)
--With assistance from Jan-Henrik Förster
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