New York Securities Fraud Lawyers Blog
Malecki Law is currently investigating the potential for recovery of losses from VelocityShares Daily 2x VIX Short-Term ETNb (TVIX), an exchange-traded note issued by Credit Suisse. The product is typically utilized to hedge against market decline, or as a presumptive bet on the decline of stocks. It appear that Credit Suisse ceased creation of new units in February, 2012, until March 22nd, when the company announced a reopened limited issuance of the product. Prior to this reopening, it seems demand for the product greatly outweighed supply. Many market observers predicted that this reopening would cause the value of the notes to plummet, causing TVIX’s premium to fade. It looks as though shares of TVIX had lost as much as 50% of their value in less than two days following Suisse’s announced reopening.
While Credit Suisse cited internal limits to the size of the product as the reason for its initial closure, many have speculated that the action of short sellers also played a role, as well as something that may have changed within the company as to how Suisse markets and packages the product. “Short sellers may be accelerating bets against TVIX today on speculation Credit Suisse will permit issuance of more shares,” said WallachBeth Capital’s Chris Hempstead.
It is the right of any and all investors who believe they may have suffered losses as a result of recommendations of their financial advisor to contact our offices to explore their legal rights and options. If you or a family member invested in TVIX exchange traded notes issued by Credit Suisse, contact the securities fraud lawyers at Malecki Law for a free consultation and case evaluation at (212) 943-1233.
Malecki Law takes a proactive and informed approach to the financial news of today: actively engaging in fact-finding analysis on prospective cases from around the world. Our thorough knowledge of securities law’s history and fine points makes us ideal consultants for investors who have suffered losses due to misadvice from their broker or other financial counsel. Information on a selection of funds and companies currently under investigation by Malecki Law can be found below. Our pursuit of excellence is constant, but our opportunities to make lasting positive change to the securities industry begin and end with determined clients who seek justice.