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

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

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April 30 (Reuters) - A bunch of individuals and entities have filed a class action lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over enterprise dealings related to Russian oligarchs, regulation agency Pomerantz LLP mentioned.

Credit score Suisse did not remark when contacted by Reuters.

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

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"The criticism alleges that, all through the category period, defendants made materially false and misleading statements concerning the company's enterprise, operations, and compliance policies," Pomerantz mentioned in the assertion.

The law firm alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Financial Times story from February wherein the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest prospects' yachts and private jets, in an uncommon use of derivatives to offload the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Times said that after the publication of its article, Credit Suisse said in an announcement that the transaction “priced in line with different significant threat transactions, supplied aggressive funding and hedging terms for our professional investor clients while growing the capital flexibility of the financial institution.”

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

On March 3, Credit score Suisse stated no shopper knowledge had been erased throughout the financial institution when it requested traders to destroy documents relating to a transaction last November, reacting to an additional Monetary Times report associated to oligarchs.

Credit score Suisse stopped pursuing new enterprise in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank stated on March 28 in an internal doc seen by Reuters. learn extra

Credit Suisse, which reported a first-quarter loss this week, has been dented by a sequence of expensive hits and a collection of authorized circumstances that it has described as legacy matters. learn extra

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Reporting by Paul Carrel Enhancing by Frances Kerry

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