Credit Suisse Index Note Investors Rebuffed on Lawsuit Additions

Credit Suisse Group AG has persuaded a federal court to stop investors from putting forth a new theory in their suit over the 2018 collapse of volatility-based notes.

The proposed additions to the complaint about the Credit Suisse “XIV Notes” product don’t merely add factual detail, Judge Analisa Torres said Monday for the US District Court for the Southern District of New York. Rather, “the allegations comprise a new theory of liability,” she said—shifting the focus from the bank’s own hedging to its activity lending notes to short-sellers.

The lead investors asked “to add a new theory of liability five ...