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

The emblem of Swiss bank Credit 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 bunch of people and entities have filed a class action lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over enterprise dealings related to Russian oligarchs, regulation agency Pomerantz LLP said.

Credit Suisse didn't 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 mentioned in a statement issued late on Friday.

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"The criticism alleges that, throughout the class period, defendants made materially false and misleading statements concerning the company's business, operations, and compliance insurance policies," Pomerantz said in the statement.

The regulation firm alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Monetary Occasions story from February through which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest customers' yachts and private jets, in an uncommon use of derivatives to offload the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Times said that after the publication of its article, Credit score Suisse stated in a statement that the transaction “priced in step with other important threat transactions, supplied aggressive investment and hedging terms for our professional investor shoppers while 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 at hand over paperwork related to the financing of yachts and personal jets owned by probably sanctioned individuals. read more

On March 3, Credit Suisse stated no consumer information had been erased within the bank when it requested traders to destroy documents referring to a transaction last November, reacting to a further Monetary Occasions report related to oligarchs.

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

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a series of expensive hits and a collection of legal cases that it has described as legacy matters. learn extra

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Reporting by Paul Carrel Editing by Frances Kerry

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