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

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

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

Credit score Suisse didn't comment when contacted by Reuters.

The lawsuit, filed in a New York district court docket, 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, throughout the category period, defendants made materially false and misleading statements regarding the corporate's enterprise, operations, and compliance policies," Pomerantz stated within the statement.

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

The Financial Instances mentioned that after the publication of its article, Credit score Suisse mentioned in a statement that the transaction “priced in step with other important risk transactions, provided competitive funding and hedging phrases for our skilled investor clients whereas growing 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 paperwork related to the financing of yachts and personal jets owned by probably sanctioned individuals. read extra

On March 3, Credit Suisse said no consumer knowledge had been erased inside the financial institution when it asked investors to destroy paperwork relating to a transaction last November, reacting to an extra Monetary Occasions report related 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 inside document seen by Reuters. learn more

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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