Credit Suisse Defeats Claims it Misled Note Buyers on Risk (1)

A pricing supplement given to purchasers of exchange-traded notes adequately warned of the risks associated with the shares, a New York federal court said in dismissing claims against Credit Suisse Group.

The share price of the bank’s VelocityShares Daily Inverse VIX Medium-Term Exchange Traded Notes dropped more than 14% in 2018 and the complaint had alleged that the shareholders were misled about the risks involved. They lost millions of dollars, they said.

But the offering documents filed with the Securities and Exchange Commission, including the pricing supplement, contained extensive disclosures regarding the risks of investing in and holding the ...