Credit Suisse Volatility Index Investors Get Added Class Status

UBS unit Credit Suisse Group AG faces an additional class of investors in a suit over the bank’s own hedging that allegedly collapsed the market for exchange traded notes tied to a volatility-based index.

Class status is appropriate for Securities Exchange Act claims that market manipulation depressed the notes’ value, but not for claims based on alleged misrepresentations under the Act, Judge Analisa Torres said Tuesday for the US District Court for the Southern District of New York. Torres previously granted class certification on Securities Act claims in the case.

• The lawsuit claimed investors lost $1.8 billion in the Feb. ...