Credit Suisse sued in U.S. over alleged business related to oligarchs

The emblem 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 group of people and entities have filed a class motion lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over enterprise dealings related to Russian oligarchs, legislation agency Pomerantz LLP mentioned.

Credit score Suisse didn't comment when contacted by Reuters.

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

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"The complaint alleges that, all through the class period, defendants made materially false and misleading statements regarding the corporate's business, operations, and compliance insurance policies," Pomerantz stated within the assertion.

The regulation firm alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Financial Instances story from February through which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest customers' yachts and private jets, in an uncommon use of derivatives to dump the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Occasions stated that after the publication of its article, Credit score Suisse said in an announcement that the transaction “priced consistent with other important threat transactions, supplied aggressive investment and hedging terms for our skilled investor purchasers while rising the capital flexibility of the bank.”

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

On March 3, Credit Suisse said no shopper data had been erased within the bank when it requested investors to destroy paperwork referring to a transaction last November, reacting to an extra Monetary Instances report related to oligarchs.

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

Credit Suisse, which reported a first-quarter loss this week, has been dented by a collection of pricey hits and a collection of legal cases that it has described as legacy matters. learn more

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Reporting by Paul Carrel Modifying by Frances Kerry

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