Investor Alert: Recovery Options for Investors Who Lost Money in Credit Suisse’s XIV Exchange Traded Note (ETN): Part 3

Posted on April 15th, 2018 at 10:14 PM
Investor Alert: Recovery Options for Investors Who Lost Money in  Credit Suisse’s XIV Exchange Traded Note (ETN): Part 3

From the Desk of Jim Eccleston at Eccleston Law LLC:

In Part 2, we concluded that this investment product lost 97% of its value in a single day – February 5, 2018 – because Credit Suisse failed to price XIV shares every 15 seconds as it had promised.  Unsophisticated buyers lost $700 million to sophisticated, well-informed sellers, according to experts.

When Credit Suisse breached its promise on 4:10 pm to all buyers and sellers of XIV (no matter what brokerage firm those investors held their shares), the next hour spelled doom for the unsuspecting.  From 4:10 pm until 5:09 pm, experts conclude that the Credit Suisse was materially misrepresenting the true economic value of XIV.  Credit Suisse provided investors with non-updated, incorrect prices of $24 per share, whereas Credit Suisse knew the true economic value was $4 per share.

During the period after 4:15 pm, investors bought 28.8 million shares at an average price of $28.60 – far greater than their true economic value of $4 per share.

But that was not all.  In Part 4, we detail a second reason that Credit Suisse harmed unsuspecting buyers of XIV.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

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