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

The brand of Swiss financial institution Credit score 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 individuals and entities have filed a category motion lawsuit towards Credit score Suisse (CSGN.S), alleging that the Swiss bank misled traders over business dealings associated to Russian oligarchs, regulation agency Pomerantz LLP mentioned.

Credit score Suisse did not remark when contacted by Reuters.

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

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"The grievance alleges that, throughout the category interval, defendants made materially false and misleading statements regarding the corporate's enterprise, operations, and compliance insurance policies," Pomerantz said in the assertion.

The legislation agency alleged disclosure shortcomings around a securitisation deal. It cited in its assertion a Financial Occasions 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 offload the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Times stated that after the publication of its article, Credit score Suisse stated in an announcement that the transaction “priced according to other significant danger transactions, offered competitive funding and hedging phrases for our professional investor purchasers 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 at hand over documents related to the financing of yachts and private jets owned by probably sanctioned individuals. learn more

On March 3, Credit Suisse said no client data had been erased inside the financial institution when it requested investors to destroy documents referring to a transaction final November, reacting to an extra Financial Occasions report related to oligarchs.

Credit Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank mentioned on March 28 in an inner doc seen by Reuters. read more

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

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Reporting by Paul Carrel Editing by Frances Kerry

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