Milberg Tadler Phillips Grossman LLP Files A Class Action On Behalf of Investors in VelocityShares Daily Inverse VIX Short Term ETNs (XIV)

NEW YORK, March 15, 2018 /PRNewswire/ -- Milberg Tadler Phillips Grossman LLP has filed a class action on behalf of purchasers of the VelocityShares Inverse VIX Short Term Exchange Traded Notes XIV during the Class Period of January 29, 2018, through February 5, 2018, inclusive.  

If you bought XIV during the Class Period and sustained damages, you can seek to be appointed as a lead plaintiff in the action by filing a motion with the Court no later than May 14, 2018.

The complaint is filed in the United States District Court for the Southern District of New York against defendants Credit Suisse AG and Janus Index & Calculation Services LLC.  It alleges that the registration statement, prospectus and pricing supplement issued on January 29, 2018, was materially false and misleading because it misrepresented the updating and accuracy of an important valuation metric, the Intraday Indicative Value, and failed to disclose that: (i) contrary to representations, the Intraday Indicative Value was not updated every 15 seconds based on the relevant index real time calculation of the relevant index (SPVXSPID) applying the real time prices of the relevant VIX futures contracts; and (ii) the Intraday Indicative Value was not an accurate gauge of the economic value of the Notes.    It also alleges that the representation of the Intraday Indicative Value was materially false and misleading because it did not reflect the proper calculation of that metric. 

On February 5, 2018, between 4:10 p.m. and 5:09 p.m., the Intraday Indicative Value, was incorrectly represented to be between $24.7 to $28.6 per Note.  The Intraday Indicative Value between 4:10 p.m. and 5:09 p.m. -- had it been calculated as Credit Suisse represented in the registration statement -- was between $4.22 and $4.4 per Note, materially less than the inflated amount of $24.7 to $28.6 per Note.   Beginning at 5:10 p.m., the Intraday Indicative Value began to update, showing a value of $4.22 per Note.  XIV was inflated as a result of the inflated Intraday Indicative Value, trading at $92.80 per Note at 4:09 p.m. and falling to $37.34 per Note at 5:10 p.m. The trading price of the Notes hit a low of $10 per Note at 6:30 p.m. and closed at $15.43 at 8:00 p.m.   On February 6, 2018, Credit Suisse issued a press release stating that it was accelerating the Maturity Date of the Notes. Their last trading day was February 20, 2018.

If you bought XIV during the Class Period and sustained damages, you have until May 14, 2018 to file a motion with the Court requesting  that the Court appoint you as lead plaintiff.   A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Milberg Tadler Phillips Grossman LLP, or other counsel of your choice, to serve as your counsel in this action.

Andrei Rado, Esq.
Milberg Tadler Phillips Grossman LLP
One Pennsylvania Plaza, 19th Fl.
New York, NY 10119
Phone number: 800-320-5081
Email: contactus@milberg.com  

Milberg Tadler Phillips Grossman LLP is an investor protection and consumer protection firm.  

Attorney Advertising. Prior results do not guarantee a similar outcome.

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SOURCE Milberg Tadler Phillips Grossman LLP