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

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

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April 30 (Reuters) - A group of people and entities have filed a class action lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss bank misled traders over enterprise dealings associated to Russian oligarchs, legislation agency Pomerantz LLP mentioned.

Credit score Suisse did not remark 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 mentioned 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 deceptive statements concerning the company's business, operations, and compliance insurance policies," Pomerantz stated within the statement.

The law firm alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Financial Occasions 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 related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Instances stated that after the publication of its article, Credit Suisse stated in an announcement that the transaction “priced consistent with other vital danger transactions, supplied aggressive funding and hedging terms for our skilled investor clients 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 score Suisse handy over paperwork related to the financing of yachts and private jets owned by doubtlessly sanctioned individuals. learn extra

On March 3, Credit score Suisse said no client information had been erased within the bank when it asked buyers to destroy documents regarding a transaction final November, reacting to a further Monetary Occasions report related to oligarchs.

Credit 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 extra

Credit 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. learn extra

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Reporting by Paul Carrel Editing by Frances Kerry

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