Securities Arbitration Lawyer Blog
Iorio Altamirano LLP is investigating claims on behalf of investors who invested in a notorious suite of exchange-traded notes issued by Credit Suisse. Investors who have lost money in VelocityShares™ ETN investments might have a claim.
If your broker recommended that you invest in the Credit Suisse VelocityShares™ ETNs, we are interested in speaking with you. Contact New York securities litigation lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.
Credit Suisse, the notes’ issuer, unexpectedly delisted the ETNs last summer and suspended further issuances in the following:
- VelocitySharesTM 3x Long Gold ETNs linked to the S&P GSCI® Gold Index ER due October 14, 2031 (UGLD)
- VelocitySharesTM3x Long Silver ETNs linked to the S&P GSCI® Silver Index ER due October 14, 2031 (USLV)
- VelocitySharesTM3x Inverse Gold ETNs linked to the S&P GSCI® Gold Index ER due October 14, 2031 (DGLD)
- VelocitySharesTM3x Inverse Silver ETNs linked to the S&P GSCI® Silver Index ER due October 14, 2031 (DSLV)
- VelocitySharesTM3x Long Natural Gas ETNs linked to the S&P GSCI® Natural Gas Index ER due February 9, 2032 (UGAZ)
- VelocitySharesTM3x Inverse Natural Gas ETNs linked to the S&P GSCI® Natural Gas Index ER due February 9, 2032 (DGAZ / DGAZF)
- VelocityShares™ Daily Inverse VIX Medium Term ETNs linked to the S&P 500 VIX Mid-Term Futures™ Index due December 4, 2030 (ZIV)
- VelocityShares™ VIX Short Term ETNs linked to the S&P 500 VIX Short-Term Futures™ Index due December 4, 2030 (VIIX)
- VelocityShares™ Daily 2x VIX Short Term ETNs linked to the S&P 500 VIX Short-Term Futures™ Index due December 4, 2030 (TVIX)
Credit Suisse delisted the ETNs and stopped issuing new units to make up for losses. Following the delisting, the ETNs traded on an over-the-counter basis, making them scarce for investors who misunderstood their net asset value.
Separately, our firm is currently investigating claims on behalf of Credit Suisse investors in the Credit Suisse-Greensill Supply Chain Finance funds. You can read more about that investigation here.
Credit Suisse VelocityShares™ 3x Inverse Natural Gas ETN (DGAZF)
A month after delisting the ETNs, in August 2020, Credit Suisse liquidated its VelocityShares™ 3x Inverse Natural Gas ETN (DGAZ / DGAZF). Investors were paid out at an average of the ETN’s indicative value over several days during the accelerated valuation period – not par value.
The ETN gave investors natural gas exposure. It was a leveraged inverse product tied to natural-gas futures. The ETN was highly complex, highly leveraged, and volatile. After being delisted, it experienced a price jump of more than 6,000% in over-the-counter trading, from $400 to $25,000.
According to the Wall Street Journal, banks and brokerages advertised ETNs as offering steadier and more lucrative payouts than plain-vanilla investments such as index-tracking funds or bonds. You can read more about ETNs here.
How to Recover Losses or Obtain a Free Consultation
Iorio Altamirano LLP is a securities litigation law firm based in New York, NY. We have experience representing institutional and retail investors in pursuing claims to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.
If you invested in the Credit Suisse VelocityShares™ ETNs, contact New York securities litigation lawyers August Iorio and Jorge Altamirano of Iorio Altamirano LLP at august@ia-law.com, jorge@ia-law.com or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.