Israeli Company Represented by Pomerantz Haudek Block
Grossman & Gross LLP Sues Credit Suisse for Auctions Rate
Securities Fraud Involving Julian Tzolov — CS
NEW YORK, Sept. 2, 2008 (LAWFUEL) — IncrediMail, Ltd., an
Israeli software company, has commenced an arbitration proceeding in
New York City against Credit Suisse Securities (USA) LLC (NYSE:CS) and
Julian Tzolov based on its purchase in July 2007 of $5 million worth of
auction rate securities issued by Centre Square Ltd.
IncrediMail’s purchase of Centre Square auction rate securities was
orchestrated by former Credit Suisse director, Julian Tzolov. Mr.
Tzolov is presently under criminal investigation, and according to a
recent report by The Wall Street Journal, has likely fled the U.S to
avoid prosecution. The Centre Square auction rate securities were
originally underwritten by Merrill Lynch, whose sale of the same
security to the municipality of Springfield, Massachusetts resulted in
lawsuits against the investment bank by Massachusetts Attorney General,
and eventual rescission of the transaction.
Commenting on the lawsuit, IncrediMail’s CEO, Ofer Adler, stated;
“We feel that we were misled by Credit Suisse to believe that we were
purchasing a highly liquid and conservative auction rate security, just
to learn after completing the purchase that the securities were of high
risk and essentially of no liquidity. Had we been told the true nature
of the security prior to the purchase, we would not have made the
transaction, which was entirely contrary to our investment strategy.”
IncrediMail is being represented in the lawsuit by Marc I Gross and
Jeremy Lieberman of Pomerantz Haudek Block Grossman & Gross LLP. A copy
of the Statement of Claim is available upon request. Contact Marc I.
Gross, Esq. at 212-661-1100 or [email protected]