Credit Suisse sued in U.S. over alleged enterprise associated to oligarchs

The logo of Swiss bank Credit Suisse is seen at a branch workplace in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Photograph

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April 30 (Reuters) - A bunch of people and entities have filed a category motion lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss bank misled buyers over business dealings related to Russian oligarchs, regulation firm Pomerantz LLP said.

Credit score Suisse did not comment when contacted by Reuters.

The lawsuit, filed in a New York district court docket, is on behalf of individuals and entities who acquired Credit score Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz mentioned in an announcement issued late on Friday.

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"The grievance alleges that, throughout the category interval, defendants made materially false and deceptive statements relating to the company's business, operations, and compliance policies," Pomerantz said in the assertion.

The regulation agency alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Monetary Times story from February during which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest customers' yachts and personal jets, in an uncommon use of derivatives to dump the dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Occasions stated that after the publication of its article, Credit score Suisse stated in a statement that the transaction “priced in keeping with different vital risk transactions, provided aggressive investment and hedging phrases for our skilled investor shoppers whereas growing the capital flexibility of the bank.”

The lawsuit also referred to a request made by U.S. lawmakers in March for Credit Suisse handy over documents related to the financing of yachts and personal jets owned by probably sanctioned individuals. read extra

On March 3, Credit score Suisse stated no shopper information had been erased throughout the bank when it asked traders to destroy paperwork relating to a transaction last November, reacting to a further Financial Instances report associated to oligarchs.

Credit Suisse stopped pursuing new enterprise in Russia after the invasion of Ukraine on Feb. 24, the Swiss financial institution stated on March 28 in an internal doc seen by Reuters. read more

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a series of costly hits and a series of authorized circumstances that it has described as legacy issues. read more

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Reporting by Paul Carrel Modifying by Frances Kerry

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