Credit Suisse class action settlements total $106 million in alleged stock lending conspiracy

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Overview of the Credit Suisse stock lending class action lawsuit settlement:

  • Why: The settlements will allow Credit Suisse to primarily opt out of class action lawsuits alleging the bank was part of a multi-bank conspiracy over stock loan trading.
  • WHO: Credit Suisse has entered into two separate class action settlements.
  • Or: The lawsuits were filed in federal court in New York.

By reaching an $81 million settlement, Credit Suisse will be the first bank to walk away from a class action lawsuit alleging megabanks conspired to monopolize the stock lending trade. The bank also reached a separate $25 million settlement to settle a multidistrict lawsuit that consolidated multiple class action lawsuits with similar antitrust allegations.

The two “ice-breaker” agreements will release Credit Suisse from any litigation. The agreements each require Credit Suisse to continue to cooperate with the class action lawsuits as litigation continues against the other megabanks involved.

Stock lending occurs when the owner of stocks temporarily transfers them to a borrower, and then the borrower pays borrowing fees and transfers other assets to the lender as collateral. This investment practice can be used to increase fund returns.

Credit Suisse, along with the other banks named in the class action lawsuits, are all major brokers in the stock lending industry and own an 80% share of the business, according to the class action lawsuit.

$81 million payout, a ‘great result’ for the settlement class

Credit Suisse’s $81 million class action payout settles a lawsuit brought by a group of public pension funds, including the Iowa Public Employees Retirement System, in 2017. The funds alleged that the Credit Suisse, along with Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, and JPMorgan Chase Bank NA, conspired to cripple some start-up competitors in equity lending, such as Quadriserv and SL-x.

The $81 million figure represents between 8% and 17% of Credit Suisse’s proportionate share of the damages that pension fund investors thought they had suffered. Investors call the payout a “great result for the settlement class.”

The Settlement Category includes all persons or entities who, directly or through an agent, have entered into stock lending transactions with all relevant parties of Credit Suisse or other prime brokers or their parent companies, direct or indirect subsidiaries or divisions in the United States. The appeal period extends from January 7, 2009 to the date of execution of the settlement.

Credit Suisse will pay out an additional $25 million to burned investors

The $25 million will settle a multi-district lawsuit that in 2016 consolidated multiple class action lawsuits against Credit Suisse, JPMorgan Chase & Co., Bank of America, Royal Bank of Scotland Group PLC, Goldman Sachs Group Inc. and Deutsche Bank AG. In these cases, investors alleged that the banks had conspired to keep their own profits high despite investors’ losses by preventing investors from using new anonymous trading platforms.

The settlement amount will first cover taxes, attorneys’ fees, service awards and expenses before distributions are made to the settlement class. The settlement class includes anyone who, directly or through an agent, has entered into at least one interest rate swap transaction with defendants in the United States. The course period is from January 1, 2008 to January 21, 2022.

Have you been affected by Credit Suisse’s conspiracy with other megabanks to prevent competition on stock lending? You may be an eligible member of these Settlement Classes!

Plaintiffs in the $25 million settlement are represented by Cohen Milstein Sellers & Toll PLLC, Quinn Emanuel Urquhart & Sullivan LLP, Susman Godfrey LLP, Jacobs Burns Orlove & Hernandez and Labaton Sucharow LLP.

the Credit Suisse Stock Loan Conspiracy Class Action $25 Million Settlement East In re: Interest Rate Swaps Antitrust LitigationCase No. 1:16-md-02704, in the U.S. District Court for the Southern District of New York.

Plaintiffs in the $81 million settlement are represented by Quinn Emanuel Urquhart & Sullivan LLP, Safirstein Metcalf LLP and Cohen Milstein Sellers & Toll PLLC.

the Credit Suisse Stock Loan Conspiracy Class Action $81 Million Settlement East Iowa Public Employees Retirement System et al. vs. Bank of America Corp. et al.Case No. 1:17-cv-06221, in the U.S. District Court for the Southern District of New York.

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Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a source of legal information that reports on class action lawsuits, class action settlements, drug-related injury lawsuits, and product liability lawsuits. Top Class Actions does not handle claims and we cannot advise you on the status of a class action settlement claim. You should contact the Settlement Administrator or your attorney for any updates regarding the status of your claim, the Claim Form, or questions about when payments should be mailed.

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