Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities that purchased VelocityShares Daily 2x Long VIX Short-Term ETNs (the “TVIX”) (NYSE Arca: TVIX) between November 30, 2010 and March 22, 2012, inclusive (the “Class Period”).
If you purchased these ETNs from VelocityShares during the Class Period, or purchased shares prior to the Class Period and still hold VelocityShares, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 825 East Gate Boulevard, Suite 300, Garden City, NY at (888) 969-4242, by e-mail to email@example.com, or at: http://www.rigrodskylong.com/investigations/velocityshares-llc-tvix.
According to the Complaint, the Pricing Supplements disseminated by Credit Suisse AG contained misleading information regarding the effect of changes in the relationship between short-term measures of volatility and longer-term measures of volatility. This relationship is sometimes referred to as the “term structure” of volatility and was a crucial and undisclosed risk associated with the ETNs. Additionally, the “Hypothetical Examples” included in these Pricing Supplements were designed to conceal this risk and were not representative of randomly calculated possibilities generated by a computer. As a result of defendants’ false and misleading statements in these Pricing Supplements, investors purchased these ETNs at artificially inflated prices during the Class Period.
On February 21, 2012, the ETNs increased in price when Credit Suisse announced it had “temporarily suspended further issuances of the [VelocityShares Daily] 2x Long VIX Short Term ETNs due to internal limits on the size of the ETNs.” Credit Suisse added that “[t]his suspension does not affect the early redemption right of holders as described” in the Pricing Supplement. This caused an increase in the price as the ETNs became scarcer. However, once this suspension was rescinded in March 2012, the price collapsed again. Further, on March 29, 2012, it was disclosed that the Financial Industry Regulatory Authority (“FINRA”) was investigating the ETNs and other exchange traded notes and that the Massachusetts securities regulator was looking into the ETNs’ February through March 2012 transactions.
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