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

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

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April 30 (Reuters) - A bunch of people and entities have filed a category action lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over enterprise dealings related 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 court, is on behalf of people 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 grievance alleges that, throughout the class interval, defendants made materially false and deceptive statements concerning the company's business, operations, and compliance insurance policies," Pomerantz mentioned within the assertion.

The legislation firm alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Monetary Instances story from February during which the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest clients' yachts and personal jets, in an unusual use of derivatives to dump the dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Times mentioned that after the publication of its article, Credit Suisse stated in a statement that the transaction “priced in keeping with different significant threat transactions, supplied competitive funding and hedging terms for our skilled investor clients while rising the capital flexibility of the financial institution.”

The lawsuit also referred to a request made by U.S. lawmakers in March for Credit score Suisse at hand over paperwork associated to the financing of yachts and private jets owned by potentially sanctioned individuals. learn more

On March 3, Credit score Suisse mentioned no consumer data had been erased within the bank when it asked traders to destroy paperwork regarding a transaction last November, reacting to an additional Financial Times report related to oligarchs.

Credit score Suisse stopped pursuing new enterprise in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank said 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 sequence of costly hits and a collection of authorized instances 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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