Class Action Filed on Behalf of Purchasers of VelocityShares™ Daily Inverse VIX Short-Term ETNs (XIV)
Kehoe Law Firm, P.C. continues its investigation of XIV securities and reports that another class action lawsuit has been filed on behalf of purchasers of the VelocityShares™ Inverse VIX Short- Term Exchange Traded Notes during the Class Period of January 29, 2018, through February 5, 2018, inclusive (the “Class Period”).
Investors who bought XIV during the class period and suffered damages have until May 14, 2018 to file a motion with the Court to seek appointment as lead plaintiff.
The class action complaint, filed in United States District Court, Southern District of New York, against defendants Credit Suisse AG and Janus Index & Calculation Services LLC, alleges that the registration statement, prospectus and pricing supplement issued on January 29, 2018 was materially false and misleading, because it misrepresented the updating and accuracy of an important valuation metric, the Intraday Indicative Value, and failed to disclose that: (i) contrary to representations, the Intraday Indicative Value was not updated every 15 seconds based on the relevant index real time calculation of the relevant index (SPVXSPID) applying the real time prices of the relevant VIX futures contracts; and (ii) the Intraday Indicative Value was not an accurate gauge of the economic value of the Notes. The complaint also alleges that the representation of the Intraday Indicative Value was materially false and misleading, because it did not reflect the proper calculation of that metric.
On February 5, 2018, between 4:10 p.m. and 5:09 p.m., the Intraday Indicative Value, was incorrectly represented to be between $24.7 to $28.6 per Note. The Intraday Indicative Value between 4:10 p.m. and 5:09 p.m. — had it been calculated as Credit Suisse represented in the registration statement — was between $4.22 and $4.4 per Note, materially less than the inflated amount of $24.7 to $28.6 per Note. Beginning at 5:10 p.m., the Intraday Indicative Value began to update, showing a value of $4.22 per Note. XIV was inflated as a result of the inflated Intraday Indicative Value, trading at $92.80 per Note at 4:09 p.m. and falling to $37.34 per Note at 5:10 p.m. The trading price of the Notes hit a low of $10 per Note at 6:30 p.m. and closed at $15.43 at 8:00 p.m. On February 6, 2018, Credit Suisse issued a press release stating that it was accelerating the Maturity Date of the Notes to February 21, 2018, terminating the Notes.
VelocityShares™ Daily Inverse VIX Short-Term ETNs (“XIV”) Investors
If you purchased, or otherwise acquired VelocityShares™ Daily Inverse VIX Short-Term ETNs (“XIV”) and have questions or concerns about the securities investigation or your potential legal rights, please contact John A. Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], complete the form above on the right or e-mail [email protected].
Investors who bought XIV during the class period and suffered damages have until May 14, 2018 to file a motion with the Court to seek appointment as lead plaintiff. Please note that no class has been certified in the above action, and until a class is certified, you are not represented by counsel unless you retain an attorney of your choice. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may serve together as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.