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

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

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April 30 (Reuters) - A group of individuals and entities have filed a class action lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss bank misled traders over enterprise dealings associated to Russian oligarchs, law firm Pomerantz LLP said.

Credit 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 press release issued late on Friday.

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

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

The Monetary Occasions mentioned that after the publication of its article, Credit score Suisse stated in an announcement that the transaction “priced in step with different important risk transactions, provided competitive funding and hedging terms for our professional investor shoppers while rising the capital flexibility of the bank.”

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

On March 3, Credit score Suisse said no consumer knowledge had been erased throughout the bank when it asked traders to destroy documents referring to a transaction final November, reacting to an additional Monetary Occasions report related to oligarchs.

Credit Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank stated on March 28 in an inner 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 collection of legal instances that it has described as legacy matters. read extra

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Reporting by Paul Carrel Enhancing by Frances Kerry

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