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Foreign Purchasers Dismissed from Class Action Against Credit Suisse

On February 11, 2010, the United States District Court for the Southern District of New York dismissed all foreign plaintiffs who bought securities on a foreign exchange (representing approximately 90% of the putative class) in a federal securities fraud class action entitled, Cornwell v. Credit Suisse Group, et al. The class action was a so-called “f-cubed” litigation—foreign purchasers suing a foreign issuer over shares purchased on a foreign exchange.

Cravath is defending Credit Suisse and four of its Senior Officers (collectively, “Defendants”) in this action, in which the plaintiffs allege violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 relating to Credit Suisse’s reporting of collateralized debt obligations (“CDO”). Plaintiffs purported to represent a worldwide class of purchasers of Credit Suisse stock (traded on the Swiss exchange) and American Depository Shares (traded on the New York Stock Exchange). The Defendants filed a motion to dismiss the amended complaint under Rule 12(b)(1) for lack of subject matter jurisdiction which was granted by the Court on September 28, 2009. Thereafter, Plaintiffs filed a motion for leave to file a second amended complaint, which Defendants opposed as futile. On February 11, 2010, the Court denied the motion for leave to file a second amended complaint as to the foreign plaintiffs and granted the U.S. plaintiffs leave to file a further amended complaint.

The lawyers involved in the defense include partners Richard W. Clary and Darin P. McAtee and associates Yonatan Even, Benjamin D. Brutlag, Alexandra Reeve Givens and Nava S. Sanders.