PHILADELPHIA, June 19, 2012 (GLOBE NEWSWIRE) -- Law Offices Bernard M. Gross, P.C. filed a class action lawsuit in the United States District Court, Southern District of New York, 12-cv-4756 on behalf of all persons who purchased VelocityShares Daily2x Long VIX Short-Term Exchange Traded Notes ("TVIX ETNs"), during the period November 30, 2010 through March 22,2012 against Credit Suisse AG, Credit Suisse Securities LLC, Credit Suisse Group, VelocityShares, LLC and certain individual defendants for violations of the Securities and Exchange Act of 1934.
The Complaint alleges that the Pricing Supplements for the TVIX ETNs contained untrue statements of material facts, omitted to state other facts necessary to make the statements made not misleading and were not prepared in accordance with the rules and regulations governing their preparation. Specifically, defendants failed to disclose that the relationship between short-term measures of volatility and longer term measures of volatility, i.e. the term structure, or yield curve risk, of volatility was a crucial and undisclosed risk associated with the TVIX ETNs. In fact it was among the most important variables and the most likely to cause an adverse price movement.
The TVIX ETNs began trading on Nov. 30, 2010 at more than $100 per ETN. In February 2012, defendants stopped issuing additional TVIX ETNs, because of supposed internal limits on the size of TVIX ETNs. Less than one month later, without any warning or further explanation, defendants announce the planned reopening of the issuance of the TVIX ETNs. As a result of this surprise announcement, the market price dropped 29% to close at $10.20, and further decreased to $5.88 on March 26, 2012 per ETN. Plaintiffs and the Class have suffered losses.
If you wish to serve as lead plaintiff, you must move the Court no later than August 17, 2012. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of its choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or any questions concerning this notice, please contact plaintiff's counsel, Deborah R. Gross or Susan R. Gross at 866-561-3600 or via email at debbie@bernardmgross.com or susang@bernardmgross.com. A copy of the complaint can be viewed at www.bernardmgross.com.
Plaintiffs are represented by Law Offices Bernard M. Gross, P.C. The firm has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.