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Credit Suisse to pay $70m to settle suit
Corporate Governance |
2011/03/11 12:47
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Credit Suisse has agreed to pay $70 million to settle a class-action suit by investors claiming it misstated its subprime asset losses.
In an agreement filed in Manhattan, the Swiss bank said it would settle with investors who purchased United States depositary shares of the company’s stock on the New York Exchange between February 15, 2007 and April 14, 2008. US residents who purchased Credit Suisse stock on the Swiss stock exchange during the period are also included. The settlement must be approved by the court.
Defendants had alleged that during the period in question, Credit Suisse and some of its executives, including chief executive Brady Dougan, issued “materially false and misleading statements regarding the company's business and financial results”.
Specifically, they alleged that Credit Suisse “concealed the company’s failure to write down impaired securities containing mortgage-related debt”.
In the settlement, Credit Suisse said it continued to “deny all charges of wrongdoing or liability”. However, the bank said it concluded that “further continuation of the action would be protracted and expensive”.
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Class action or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued. This form of collective lawsuit originated in the United States and is still predominantly a U.S. phenomenon, at least the U.S. variant of it. In the United States federal courts, class actions are governed by Federal Rules of Civil Procedure Rule. Since 1938, many states have adopted rules similar to the FRCP. However, some states like California have civil procedure systems which deviate significantly from the federal rules; the California Codes provide for four separate types of class actions. As a result, there are two separate treatises devoted solely to the complex topic of California class actions. Some states, such as Virginia, do not provide for any class actions, while others, such as New York, limit the types of claims that may be brought as class actions. They can construct your law firm a brand new website, lawyer website templates and help you redesign your existing law firm site to secure your place in the internet. |
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