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

The brand of Swiss financial institution 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 class action lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over enterprise dealings associated to Russian oligarchs, regulation firm Pomerantz LLP said.

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 Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz stated in an announcement issued late on Friday.

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"The complaint alleges that, throughout the class interval, defendants made materially false and misleading statements relating to the corporate's enterprise, operations, and compliance policies," Pomerantz mentioned within the statement.

The legislation agency alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Monetary Times story from February wherein the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest customers' yachts and personal jets, in an unusual use of derivatives to offload the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Instances said that after the publication of its article, Credit score Suisse stated in a statement that the transaction “priced in keeping with other vital risk transactions, offered aggressive funding and hedging phrases for our skilled investor clients whereas increasing the capital flexibility of the bank.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit score Suisse handy over paperwork associated to the financing of yachts and personal jets owned by doubtlessly sanctioned individuals. learn extra

On March 3, Credit score Suisse mentioned no shopper data had been erased inside the financial institution when it asked buyers to destroy paperwork regarding a transaction final November, reacting to an extra Monetary Occasions report associated to oligarchs.

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

Credit Suisse, which reported a first-quarter loss this week, has been dented by a sequence of expensive hits and a series of legal instances that it has described as legacy issues. learn more

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Reporting by Paul Carrel Enhancing by Frances Kerry

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