Credit Suisse Faces Revived Claims Over Inverse VIX Crash

Law360 (April 27, 2021, 6:29 PM EDT) -- The Second Circuit ruled Tuesday that Credit Suisse will have to face claims that it triggered a liquidity crunch to bottom out the price of notes inversely tied to stock market volatility and pick up nearly half a billion dollars of profits.

An appellate panel vacated a New York federal judge's ruling from 2019 that dismissed manipulation claims against the bank over the price crash for Inverse VIX Short exchange-traded notes, or XIV notes, after the close of regular trading hours on Feb. 5, 2018.

Unlike the lower court, the Second Circuit was swayed Tuesday by the investors' allegations that Credit...

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