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

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

Register

April 30 (Reuters) - A group of people and entities have filed a class motion lawsuit towards Credit Suisse (CSGN.S), alleging that the Swiss bank misled investors over enterprise dealings related to Russian oligarchs, legislation firm Pomerantz LLP said.

Credit Suisse did not remark when contacted by Reuters.

The lawsuit, filed in a New York district courtroom, 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 statement issued late on Friday.

Register

"The criticism alleges that, all through the category period, defendants made materially false and misleading statements relating to the corporate's enterprise, operations, and compliance policies," Pomerantz stated in the statement.

The regulation firm alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Financial Instances story from February during which the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest prospects' yachts and personal jets, in an uncommon use of derivatives to dump the dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Occasions said that after the publication of its article, Credit Suisse said in a press release that the transaction “priced consistent with other important danger transactions, offered competitive investment and hedging terms for our skilled investor purchasers whereas rising the capital flexibility of the bank.”

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

On March 3, Credit score Suisse stated no client knowledge had been erased inside the financial institution when it asked buyers to destroy paperwork relating to a transaction final November, reacting to an extra 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 financial institution stated on March 28 in an inside document seen by Reuters. read more

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

Register

Reporting by Paul Carrel Editing by Frances Kerry

Our Requirements: The Thomson Reuters Trust Rules.