OAKLAND, Calif.--(BUSINESS WIRE)--Gibbs Law Group has filed a class action lawsuit against Credit Suisse AG and Janus Index & Calculation Services LLC on behalf of investors of Credit Suisse VelocityShares Daily Inverse VIX Short Term ETNs (Nasdaq: XIV) who invested between January 29, 2018 and February 5, 2018. The lawsuit seeks to recover damages for XIV investors under the federal securities laws.
To speak privately with an attorney regarding the XIV lawsuit investigation, click here.
On February 5, 2018, investors incurred massive losses when XIV plunged more than 90% in after-hours trading, precipitously dropping in value from a trading-day close of $99 at 4pm down to a low of $10 at 6:30pm, with an ultimate end price of $15.43. The following day, Credit Suisse announced that it would exercise its option to trigger an acceleration event, effectively shutting the security down as of February 21, 2018, and causing significant harm to investors.
The lawsuit alleges that the XIV offering documents were materially false and misleading because they failed to disclose that:
1. The Intraday Indicative Value of the notes was not updated every 15 seconds based on the relevant index real time calculation of the relevant index (SPVXSPID) applying the real time prices of the relevant VIX futures contracts;
2. The Intraday Indicative Value was not an accurate gauge of the economic value of the Notes; and
3. The Intraday Indicative Value did not reflect the proper calculation of that metric.
“Investors are entitled to truthful information, so they can make informed decisions about the securities in which they invest,” said Eric Gibbs, one of the lead attorneys. “The defendants’ failure to provide accurate, up-to-date information about the Intraday Indicative Value as promised in the prospectus resulted in significant harm to investors.”
If you purchased or acquired XIV and would like to speak privately with a securities attorney to learn more about the XIV lawsuit investigation or your legal rights as an investor, please visit our website or contact the securities team directly at (800) 254-9493.
Investors who bought XIV during the Class Period and sustained damages may seek to be appointed as a lead plaintiff in the action by filing a motion with the Court no later than May 14, 2018.
About Gibbs Law Group
Gibbs Law Group is a national litigation firm representing investors, businesses, municipalities and unions in class and individual actions in state and federal courts throughout the country. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have been honored for the quality of their work and legal achievements with recognition in the Best Lawyers in America list for five consecutive years.
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