Credit Suisse wants lawsuit on delisted exchange-traded notes dropped

By Sarah Jarvis (July 12, 2022, 5:50 p.m. EDT) — Credit Suisse has asked a federal judge in New York to permanently dismiss a proposed class action lawsuit alleging it caused substantial losses to retail investors during the delisting of a popular exchange-traded note, arguing the investment banking firm issued adequate warnings about the risks of the note.

Credit Suisse AG said in a memorandum filed on Monday that the plaintiff, retail investor Adelina Gomez, is trying to make the financial institution the insurer of its “highly risky investment strategy” of seeking outsized returns by shorting the exchange-traded note, or ETN, known as DGAZ.

“The plaintiff knowingly made a bet on a risky financial product in the hope of winning…

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