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

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

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

Credit score Suisse did not comment when contacted by Reuters.

The lawsuit, filed in a New York district court, is on behalf of people 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 class period, defendants made materially false and deceptive statements regarding the corporate's business, operations, and compliance insurance policies," Pomerantz said within the statement.

The law agency alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Financial Times story from February in which the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest customers' yachts and personal 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 Suisse mentioned in a press release that the transaction “priced consistent with other significant threat transactions, supplied aggressive investment and hedging phrases 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 Suisse handy over documents associated to the financing of yachts and personal jets owned by doubtlessly sanctioned people. learn extra

On March 3, Credit score Suisse stated no consumer knowledge had been erased inside the financial institution when it asked investors to destroy documents referring to a transaction final November, reacting to a further Monetary Times report associated to oligarchs.

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

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

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Reporting by Paul Carrel Editing by Frances Kerry

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