Credit Suisse Defeats Investor Suit Over Inverse VIX Crash

Law360 (September 25, 2019, 6:17 PM EDT) -- A New York federal judge ruled Wednesday that Credit Suisse expressly warned investors that buying short-term notes that were inversely tied to stock market volatility was risky before the price of those notes crashed last year.

U.S. District Judge Analisa Torres adopted a magistrate judge's recommendation to dismiss, without leave to amend, a consolidated securities suit that claimed Credit Suisse schemed to trigger a liquidity crunch that caused the price of its Inverse VIX Short exchange-traded notes, or VIX, to drop nearly 96% after the close of regular trading hours on Feb. 5, 2018.

The crash caused an "acceleration event" that...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS