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

The brand of Swiss financial institution Credit 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 gaggle of people and entities have filed a class action lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over enterprise dealings associated to Russian oligarchs, legislation agency Pomerantz LLP said.

Credit Suisse didn't remark when contacted by Reuters.

The lawsuit, filed in a New York district courtroom, is on behalf of people and entities who acquired Credit score Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz said in a press release issued late on Friday.

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"The complaint alleges that, all through the category period, defendants made materially false and misleading statements relating to the company's enterprise, operations, and compliance policies," Pomerantz mentioned in the statement.

The law firm alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Monetary Times story from February during 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 dump the dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Instances mentioned that after the publication of its article, Credit score Suisse said in a statement that the transaction “priced in step with other important danger transactions, supplied aggressive funding and hedging terms for our skilled investor purchasers whereas increasing the capital flexibility of the bank.”

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

On March 3, Credit Suisse stated no consumer knowledge had been erased throughout the financial institution when it requested traders to destroy paperwork regarding a transaction final November, reacting to an additional Monetary Instances 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 extra

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

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Reporting by Paul Carrel Editing by Frances Kerry

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