US shareholders of Credit Suisse Group AG (NYSE:CS) filed a class-action lawsuit against the Swiss bank on Thursday, accusing it of defrauding them by hiding issues related to its finances, according to multiple reports citing court papers.
The plaintiffs claim that Credit Suisse failed to reveal "significant" customer outflows and material weaknesses in its internal controls over financial reporting.
The lawsuit, led by Braden Turner, states that investors suffered losses when Credit Suisse's stock price plummeted to a record low as the truth emerged and its largest shareholder refused to invest more funds, Reuters said.
Filed in a federal court in Camden, New Jersey, the case appears to be the first by US investors regarding recent problems at Credit Suisse. The bank has since secured a US$54bn lifeline from Switzerland's central bank, restoring some market confidence.
Credit Suisse has so far declined to comment.