{"id":1182,"date":"2013-01-11T17:11:31","date_gmt":"2013-01-11T17:11:31","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2013\/01\/credit_suisse_must_face_ars_la"},"modified":"2022-09-19T09:54:16","modified_gmt":"2022-09-19T14:54:16","slug":"credit-suisse-must-face-ars-la","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/credit-suisse-must-face-ars-la\/","title":{"rendered":"Credit Suisse Must Face ARS Lawsuit Over Subsidiary Brokerage\u2019s Alleged Misconduct, Says District Court"},"content":{"rendered":"

\t\t\t\tThe U.S. District Court for the Southern District of New York has rejected Credit Suisse Group’s (CS) motion to dismiss Elbit Systems Ltd. v. Credit Suisse Group, the auction-rate securities lawsuit filed by an investor claiming that alleged misconduct took place at a Credit Suisse Group brokerage firm subsidiary Credit Suisse Securities (USA) LLC. The court said that the investor did an adequate job of alleging that the subsidiary acted with actual power of authority as Credit Suisse Group’s agent.<\/p>\n

The plaintiff, Elbit Systems Ltd., contends that it invested in ARS because it was told that these were liquid, safe, and backed by the US government-backed. However, the Israeli electronics company claims that even as the market started failing in 2007, cash managers started to replace the government-backed ARS with more risky ARS backed by credit-linked note securities and collateralized debt obligations, and its Corporate Cash Management account began to fail, it was never informed that these problems were happening. Instead, its holdings in these risky investments were allegedly increased. <\/p>\n

As of the complaints filing, Elbit’s securities have not been sold while its ARS investments had allegedly lost about $16 million. Also, a Credit Suisse Securities executive is accused of telling the plaintiff that brokers Eric Butler and Julian Tzolov were too busy to handle its account when actually, the two of them were no longer at the firm because they had been accused of securities fraud. <\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

The U.S. District Court for the Southern District of New York has rejected Credit Suisse Group’s (CS) motion to dismiss Elbit Systems Ltd. v. Credit Suisse Group, the auction-rate securities lawsuit filed by an investor claiming that alleged misconduct took place at a Credit Suisse Group brokerage firm subsidiary Credit Suisse Securities (USA) LLC. The […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3865,3817,3752],"tags":[],"class_list":["post-1182","post","type-post","status-publish","format-standard","hentry","category-auction-rate-securities","category-credit-suisse","category-financial-firms"],"yoast_head":"\nCredit Suisse Must Face ARS Lawsuit Over Subsidiary Brokerage\u2019s Alleged Misconduct, Says District Court — Investor Lawyers Blog — January 11, 2013<\/title>\n<meta name=\"description\" content=\"The U.S. District Court for the Southern District of New York has rejected Credit Suisse Group's (CS) motion to dismiss Elbit Systems Ltd. v. 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