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

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

Credit Suisse didn't comment when contacted by Reuters.

The lawsuit, filed in a New York district courtroom, is on behalf of people and entities who acquired Credit 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 relating to the corporate's enterprise, operations, and compliance insurance policies," Pomerantz stated within the assertion.

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

The Monetary Instances said that after the publication of its article, Credit Suisse stated in a press release that the transaction “priced in line with different significant risk transactions, provided aggressive funding and hedging phrases for our professional investor clients while rising the capital flexibility of the financial institution.”

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

On March 3, Credit score Suisse stated no shopper information had been erased throughout the financial institution when it requested buyers to destroy documents regarding a transaction final November, reacting to an extra Monetary Times 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 mentioned on March 28 in an inner doc seen by Reuters. read more

Credit score 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 matters. learn more

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Reporting by Paul Carrel Modifying by Frances Kerry

Our Standards: The Thomson Reuters Trust Rules.