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

The logo of Swiss bank Credit Suisse is seen at a branch workplace in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Picture

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April 30 (Reuters) - A gaggle of individuals and entities have filed a class motion lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss bank misled traders over business dealings related to Russian oligarchs, law firm Pomerantz LLP said.

Credit score Suisse did not comment when contacted by Reuters.

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

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"The criticism 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 stated within the statement.

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

The Financial Occasions said that after the publication of its article, Credit score Suisse mentioned in an announcement that the transaction “priced according to other significant risk transactions, provided competitive funding and hedging terms for our skilled investor purchasers whereas growing the capital flexibility of the financial institution.”

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

On March 3, Credit score Suisse said no client information had been erased within the bank when it asked buyers to destroy documents referring to a transaction last November, reacting to an additional Financial Times report associated 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 doc seen by Reuters. learn more

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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