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

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

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April 30 (Reuters) - A bunch of people and entities have filed a class motion lawsuit towards Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over enterprise dealings related to Russian oligarchs, regulation firm Pomerantz LLP said.

Credit score Suisse did not comment 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 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 relating to the corporate's business, operations, and compliance insurance policies," Pomerantz said within the assertion.

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

The Monetary Instances said that after the publication of its article, Credit score Suisse said in an announcement that the transaction “priced according to other important threat transactions, supplied competitive investment and hedging terms for our skilled investor shoppers whereas increasing the capital flexibility of the financial institution.”

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

On March 3, Credit score Suisse said no consumer information had been erased throughout the bank when it requested investors to destroy documents relating to a transaction last November, reacting to an extra Financial Occasions report associated to oligarchs.

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

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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