Credit Suisse International has market manipulation lawsuit against it dismissed

Maria Nikolova

The order for the voluntary dismissal of the allegations against CSI is signed less than a month after the case was dropped against Credit Suisse Group AG.

Credit Suisse

Credit Suisse International (CSI) has had the complaint against it dropped in a case targeting a number of primary dealers of US Treasuries. The order, filed earlier today with the New York Southern District Court, was signed by Judge Paul Gardephe on March 23, 2018.

The order stipulates that CSI is no longer a party in the market manipulation case captioned Breakwater Trading LLC et al v. Bank Of America Corporation et al (1:17-cv-06497). The plaintiffs have voluntarily dismissed all claims against CSI without prejudice to reassert such claims against CSI at a later time should evidence arise in discovery or otherwise that reveals information providing a basis for joining CSI on the claims being litigated in this case.

In particular, the case is dropped because:

  • CSI is incorporated in the United Kingdom and has its principal place of business in the United Kingdom;
  • CSI has no branches, offices, or employees in the United States;
  • None of CSI’s revenue is attributable to the United States;
  • None of the Credit Suisse employees identified in the complaint are employees of CSI;
  • CSI is neither a primary dealer nor market maker in United States Treasury securities;
  • CSI does not have a United States Treasuries desk and, with the exception of occasional hedging transactions, CSI does not sell United States Treasuries directly to customers.

Less than a month ago, the case was dismissed against Citigroup Inc (NYSE:C), Credit Suisse Group AG (VTX:CSGN), JPMorgan Chase & Co. (NYSE:JPM), Goldman Sachs Group Inc (NYSE:GS), Morgan Stanley (NYSE:MS), and Royal Bank of Scotland Group PLC (NYSE:RBS) for similar reasons.

The plaintiffs – Breakwater Trading LLC, BWT Professional Trading, LLC, and Endeavor Trading, LLC, accuse the defendants of taking part in a conspiracy, starting at least as early as January 1, 2007 and thereafter continuing, to fix and otherwise manipulate marketable US Treasury Bills, Notes, Bonds, Floating Rate Notes (FRNs), and Treasury Inflation-Protected Securities (TIPS) markets and related Auctions and derivative financial products, including Treasury-predicated futures and options traded on the Chicago Mercantile Exchange (CME).

The Defendants are alleged to have violated their market integrity obligations and otherwise abused their positions of trust to their own ends. They are accused to have conspired by, among other things, sharing confidential and competitively sensitive client order information to fix and otherwise manipulate the Treasuries and Treasuries-Predicated Instruments markets before, during, and after Treasuries Auctions.

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