Investor Alert: Recovery Options for Investors Who Lost Money in Credit Suisse’s XIV Exchange Traded Note (ETN): Part 2

Posted on April 15th, 2018 at 5:47 PM
Investor Alert: Recovery Options for Investors Who Lost Money in  Credit Suisse’s XIV Exchange Traded Note (ETN): Part 2

From the Desk of Jim Eccleston at Eccleston Law LLC:

In Part 1, we asked how this investment product could have lost 97% of its value in a single day – February 5, 2018. 

The answer is timely pricing.  Credit Suisse promised investors holding XIV that it would publish an estimate of the current economic value of XIV shares every 15 seconds based on real time VIX futures prices.  However, Credit Suisse did not do so.

4:10 pm is a pivotal time.  According to experts, it is at that time that Credit Suisse effectively stopped updating its estimate of the current economic value of XIV shares when VIX futures prices were changing significantly.

In Part 3, we discuss the specifics, and how unsuspecting buyers of XIV shares were duped (at least until they can recover through litigation) out of approximately $700 million by sophisticated, well-informed sellers.

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.

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