VelocityShares Daily 2x VIX Short Term ETN (NYSEARCA:TVIX) Investor Files Class Action Lawsuit Over Alleged Securities Laws Violations

If you purchased VelocityShares Daily 2x VIX Short Term ETN (NYSEARCA:TVIX) between November 30, 2010 and March 22, 2012, have certain options and there are strict and short deadlines running. Deadline: July 25, 2012. TVIX investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
VelocityShares Daily 2x VIX Short Term ETN
Case Name: 
VelocityShares Daily 2x VIX Short Term ETN Class Action Lawsuit 05/25/2012
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: TVIX
NYSEARCA: TVIX
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
05/25/2012
Class Period Begin: 
11/30/2010
Class Period End: 
03/22/2012
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
07/25/2012
Summary: 

June 15, 2012 (Shareholders Foundation) -- An investor in VelocityShares Daily 2x VIX Short Term ETN (NYSEARCA:TVIX) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged Violations of Federal Securities Laws.

According to the complaint the plaintiff alleged on behalf of purchasers of VelocityShares Daily 2x Long VIX Short-Term ETNs between November 30, 2010 and March 22, 2012, that VelocityShares, LLC and certain of its officers and directors and Credit Suisse AG and certain of its related entities and their officers and/or directors violated the Securities Exchange Act of 1934. Specifically, the plaintiff says on November 29, 2010, Credit Suisse AG and certain of its related entities disseminated the VelocityShares Pricing Supplement and those Pricing Supplement and subsequent Pricing Supplements included an important section entitled "Hypothetical Examples.", which described more specifically the risk profile of the VelocityShares Daily 2x Long VIX Short-Term ETNs by noting several variables that would affect the returns. The plaintiff says that this was meant to illustrate the effect that different factors could have on the ultimate payment and returns on an investment in the VelocityShares Daily 2x Long VIX Short-Term ETNs.

The plaintiff alleges that that the description of these factors was misleading and omitted a key factor: the effect of changes in the relationship between short-term measures of volatility and longer-term measures of volatility, sometimes referred to as the "term structure" of volatility, which was a crucial and undisclosed risk associated with the VelocityShares Daily 2x Long VIX Short-Term ETNs.

VelocityShares Daily 2x VIX Short Term ETN (NYSEARCA:TVIX) rose to $100.90 on October 3, 2011.

The plaintiff claims that on February 21, 2012, the VelocityShares Daily 2x VIX Short Term ETN increased in price when Credit Suisse AG and certain of its related entities announced it had "temporarily suspended further issuances of the [VelocityShares Daily 2x VIX Short Term ETN] due to internal limits on the size".

Once this suspension was rescinded in March 2012, VelocityShares Daily 2x VIX Short Term ETN fell to as low as $5.88 per ETN, on March 26, 2012.

VelocityShares Daily 2x VIX Short Term ETN(NYSEARCA:TVIX) closed on June 19, 2012 at $6.18 per share.