Credit Suisse Case Spotlights Who Can Lead Securities Lawsuits

A federal magistrate judge’s rejection of a lead plaintiff bid in a proposed securities class action against Credit Suisse Group AG highlights how courts decide if an investor is right for the role.

The judge found Credit Suisse investor Yasni Jimenez wouldn’t adequately represent a proposed class alleging the bank made false and misleading statements about its practice of lending money to Russian oligarchs. Jimenez, who estimated losing $621, was the only investor who requested to be lead plaintiff.

Courts aren’t required to appoint someone as lead plaintiff just because no one else expresses interest in the position, legal scholars ...