Credit Suisse Zoom Autocallable Notes Results in Potential Significant Investor Risk
The White Law Group is investigating potential securities lawsuits involving Credit Suisse Zoom Autocallable Notes.
Investors who purchased a structured product from Credit Suisse linked to Zoom Video Communications Inc. may face significant downside risk depending on stock performance.
The structured note in question—Credit Suisse’s Auto-Callable Contingent Income Securities based on the Class A common stock of Zoom Video Communications Inc. (CUSIP: 22550X626)—was issued in October 2020 with a face value of $12,845,000. The note’s performance is tied to Zoom stock, and poor performance could substantially reduce or eliminate the final payout.
Details of the Investment
- Issue Date: October 5, 2020
- Linked Security: Zoom Video Communications, Inc. Class A Common Stock (NASDAQ: ZM)
- Product Type: Auto-Callable Contingent Income Structured Note
- Face Value: $12,845,000
- Final Payout: Depends on Zoom stock price on October 5, 2023
- If price ? $407.11 (50% of initial $814.22): $1,000 + final coupon ($18.875) per note
- If price < $407.11: $1,000 × (final stock price ÷ $814.22) — leading to potential full loss
- Total Loss Potential: Up to 100% of principal. If Zoom’s stock closes below the downside threshold, investors may suffer substantial losses.
Why Could the Investment Lose Value?
Contingent income notes offer high yield potential but expose investors to substantial market risk. In this case:
- The note is automatically called if Zoom stock closes ? $814.22 on any observation date
- If not called and price falls below $407.11 on the final date, investor return is reduced based on share performance
- Contingent coupons (18.905% annualized) only paid if ZM closes above the coupon barrier
- Estimated value at pricing: $978.75 per $1,000 note
Understanding the Risks of Autocallable Notes
Although offering high contingent interest, these notes include serious risks:
- Market risk of Zoom stock (ZM)
- Credit risk of Credit Suisse AG
- No guaranteed interest or principal protection
- Potential full loss if the downside threshold is breached
- Not FDIC insured or backed by government protections
Did Your Financial Advisor Recommend This Investment?
If this Zoom-linked structured note was unsuitable or misrepresented, you may be able to recover your losses through FINRA arbitration.
FINRA Arbitration vs. Class Action
- Arbitration is more effective for significant individual investor losses
- Class actions apply to smaller, uniform claims across many investors
Free Consultation
The White Law Group is investigating potential claims involving Credit Suisse Zoom Autocallable Notes. If you’ve suffered losses, call (888) 637-5510 for a free consultation.
Visit www.whitesecuritieslaw.com for more information on current investigations.
Last modified: June 5, 2025