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

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

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April 30 (Reuters) - A group of individuals and entities have filed a category action lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss bank misled buyers over enterprise dealings associated to Russian oligarchs, legislation firm 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 individuals and entities who acquired Credit Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz stated in an announcement issued late on Friday.

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"The complaint alleges that, throughout the category interval, defendants made materially false and misleading statements concerning the corporate's business, operations, and compliance policies," Pomerantz said within the assertion.

The law agency alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Financial Times story from February through which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest prospects' yachts and private jets, in an unusual use of derivatives to dump 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 said in a press release that the transaction “priced in step with other vital threat transactions, supplied competitive funding and hedging terms for our professional investor shoppers whereas growing the capital flexibility of the bank.”

The lawsuit also 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 doubtlessly sanctioned individuals. learn more

On March 3, Credit Suisse stated no consumer knowledge had been erased within the bank when it asked investors to destroy documents relating to a transaction last November, reacting to an additional Financial Occasions report associated to oligarchs.

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

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a series of pricey hits and a sequence of legal instances that it has described as legacy issues. read extra

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Reporting by Paul Carrel Editing by Frances Kerry

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