Amid the crisis the Credit Suisse has been facing, U.S. shareholders of Credit Suisse Group sued the Swiss bank on Thursday, claiming that the bank defrauded them by concealing problems with its finances.
According to reports, the proposed class action accuses Credit Suisse of deceiving investors by failing to disclose that it was suffering from "significant" customer outflows, and that it had material weaknesses in its internal controls over financial reporting.
As per reports, Credit Suisse declined to comment on the lawsuit, which was filed in federal court in Camden, New Jersey. Chief Executive Ulrich Koerner and Chair Axel Lehmann are among the other defendants.
The law firm representing the shareholders led by Braden Turner, was also first to file shareholder lawsuits against Silicon Valley Bank parent SVB Financial Group and Signature Bank. Regulators seized both of those banks within the last week.
Crisis-hit Credit Suisse regained some market confidence on Thursday after securing a lifeline to borrow up to $54 billion from Switzerland's central bank.