NEW YORK (TheStreet) -- Shares of Credit Suisse Group (CS) are down 1.81% to $25.50 in pre-market trade after it was reported that it said today that it would fight a U.S. lawsuit which accuses the Swiss bank of deceiving investors in mortgage-backed securities it had issued, Reuters reports
The Zurich-based bank said a New York State Supreme Court justice had last week rejected its request to dismiss the case, in which New York Attorney General Schneiderman accuses the bank of misrepresenting the quality of loans underlying residential mortgage-backed securities sponsored and underwritten by Credit Suisse in 2006 and 2007, Reuters said.
Investors suffered $11.2 billion in losses on the securities, according to Schneiderman's lawsuit, which stems from a joint federal-state working group created by President Obama to go after wrongdoing that led to the 2008 financial crisis.
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TheStreet Ratings team rates CREDIT SUISSE GROUP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CREDIT SUISSE GROUP (CS) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, disappointing return on equity and weak operating cash flow."