Credit Suisse Asks Maryland Federal Court to Stop FINRA Arbitration Concerning TVIX Investments

Attorneys for Credit Suisse Securities (USA) LLC (“Credit Suisse”) and VLS Securities LLC (“VLS”) have filed a lawsuit in federal court in Maryland seeking to enjoin a group of investors who allegedly “have no prior or current relationship with either Credit Suisse or VLS, from pursuing an arbitration proceeding they have filed against Plaintiffs before the Financial Industry Regulatory Authority (‘FINRA’).”  The investors purportedly sustained losses in connection with “the offering of VelocityShares Daily 2x VIX Short Term Exchange Traded Notes (“TVIX”), a financial product issued by Credit Suisse
AG”.’  However, Credit Suisse argues that the investors are not its customers or customers of VLS and cannot be compelled to arbitrate the dispute.

You can see the federal court complaint and statement of claim here.

Credit Suisse Securities (USA) LLC v. Fesenko, Case No. 13-CV-01187 (District of Maryland).