Credit Suisse Contingent Coupon Autocallable Yield Notes Lawsuit: Investor Alert
Have you suffered investment losses in Credit Suisse Contingent Coupon Autocallable Yield Notes linked to companies like Lucid Group, Inc. and Uber Technologies, Inc.? If so, the securities attorneys at The White Law Group may be able to help you recover your losses through a FINRA arbitration claim against the broker-dealer that recommended the investment.
What Are Contingent Coupon Autocallable Yield Notes?
These structured products are complex debt securities with terms that can expose investors to significant risk. According to Pricing Supplement No. U6216 filed under Registration Statement No. 333-238458-02, the $1,000,000 issuance of Contingent Coupon Autocallable Yield Notes:
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Were issued by Credit Suisse on October 18, 2021, and mature on October 18, 2024
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Are linked to the lowest performing of two underlying equities: Lucid Group, Inc. (LCID) and Uber Technologies, Inc. (UBER)
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Offer a contingent coupon of $11.9167 per $1,000 note (approximately 14.30% per annum), only if a Coupon Barrier Event has not occurred
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Are automatically callable if the underlying performance meets specific thresholds
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Do not guarantee return of principal, and investors may lose some or all of their investment if a Knock-In Event occurs
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Were issued in minimum denominations of $1,000
Despite the promise of high yield, these products are senior unsecured obligations of Credit Suisse, meaning any repayment is subject to the issuer’s creditworthiness.
Risks of Investing in Structured Notes
Structured notes, like these offered by Credit Suisse, often combine a bond with a derivative component. The return is tied to one or more underlying assets—commonly equities or indexes. These products can be highly complex and risky, particularly for retail investors.
Common concerns include:
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Lack of principal protection
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Unpredictable coupon payments
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Issuer credit risk
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Limited liquidity and market for resale
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High commissions to brokers
Unfortunately, many investors are led to believe these notes offer “downside protection” or are similar to fixed-income products, when in reality they may be high-risk equity-linked derivatives.
FINRA Arbitration and Brokerage Firm Liability
Broker-dealers who sell structured notes have two primary legal responsibilities:
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Due Diligence: They must fully investigate and understand the products they recommend.
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Suitability: They must ensure that any investment they recommend aligns with the client’s risk tolerance, investment objectives, financial situation, and level of experience.
Failure to meet these obligations can result in liability through FINRA arbitration.
High Commissions = Potential Conflicts of Interest
Structured products like these often carry high commissions, incentivizing brokers to sell them even when they are not in a client’s best interest. Some firms may even use misleading names (e.g., market-linked CDs) to make them appear more conservative than they are.
Credit Suisse Structured Note Lawsuits
The White Law Group is currently investigating potential claims involving:
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Misrepresentation of risks
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Unsuitable recommendations
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Inadequate due diligence
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Overconcentration in structured products
If your financial advisor failed to adequately disclose the risks of Credit Suisse structured notes, you may be eligible to recover your investment losses.
Free Consultation with a Securities Attorney
If you invested in Credit Suisse Contingent Coupon Autocallable Yield Notes and suffered losses, contact the securities attorneys at The White Law Group for a free consultation.
Call us at 888-637-5510 or visit us online at whitesecuritieslaw.com.
The White Law Group is a national securities fraud and investor protection law firm with offices in Chicago, IL and Seattle, WA.
Frequently Asked Questions (FAQs)
What are contingent coupon notes?
They are structured debt instruments that pay interest only if certain market conditions are met and often carry a high risk of principal loss.
Are Credit Suisse yield notes safe investments?
These are high-risk products with no guaranteed return of principal, and their safety depends heavily on the performance of the underlying assets and the issuer’s creditworthiness.
Can I sue my broker for losses in structured notes?
Possibly. If your broker failed to perform proper due diligence or sold the notes to you despite them being unsuitable, you may be able to file a claim through FINRA arbitration.
