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

The emblem of Swiss bank Credit score Suisse is seen at a department office in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Photograph

Register

April 30 (Reuters) - A bunch of individuals and entities have filed a category action lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over enterprise dealings related to Russian oligarchs, regulation firm Pomerantz LLP mentioned.

Credit Suisse did not remark when contacted by Reuters.

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

Register

"The complaint alleges that, throughout the class period, defendants made materially false and deceptive statements concerning the company's enterprise, operations, and compliance policies," Pomerantz stated within the assertion.

The legislation agency alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Monetary 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 uncommon use of derivatives to dump 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 a press release that the transaction “priced in line with other vital danger transactions, offered aggressive funding and hedging terms for our skilled investor shoppers while increasing the capital flexibility of the financial institution.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit score Suisse handy over paperwork associated to the financing of yachts and private jets owned by doubtlessly sanctioned people. learn extra

On March 3, Credit Suisse mentioned no consumer data had been erased within the bank when it asked buyers to destroy paperwork referring to a transaction final November, reacting to a further Monetary Instances report associated to oligarchs.

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

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

Register

Reporting by Paul Carrel Enhancing by Frances Kerry

Our Requirements: The Thomson Reuters Trust Rules.