Bloomberg Law
March 17, 2023, 3:11 PM

Credit Suisse Must Face 2018 Claims Over ‘Fear Index’ Notes

Bob Van Voris
Bob Van Voris
Bloomberg News

Credit Suisse Group AG will have to face class-action claims in a case alleging the firm engineered a complex fraud in 2018 to sink an investment vehicle tied to Wall Street’s “fear index,” and profit from losses by investors.

The lawsuit claimed investors lost $1.8 billion in the Feb. 5, 2018, collapse of the market for VelocityShares Daily Inverse VIX Short Term Exchange Traded Notes, known as “XIV Notes,” a derivative investment that increased in value when the stock market was calm and decreased when it was volatile.

US District Judge Analisa Torres ruled Thursday that investors who sued can ...