Credit score Suisse sued in U.S. over alleged enterprise 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 Photo

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April 30 (Reuters) - A gaggle of individuals and entities have filed a class action lawsuit towards Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over business dealings associated to Russian oligarchs, law agency Pomerantz LLP said.

Credit score Suisse didn't 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 Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz stated in an announcement issued late on Friday.

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"The complaint alleges that, throughout the category period, defendants made materially false and deceptive statements regarding the company's business, operations, and compliance policies," Pomerantz mentioned in the assertion.

The legislation firm alleged disclosure shortcomings around 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 prospects' yachts and personal jets, in an unusual use of derivatives to offload the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Occasions mentioned that after the publication of its article, Credit Suisse mentioned in an announcement that the transaction “priced in line with different significant danger transactions, offered competitive investment and hedging terms for our professional investor clients 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 score Suisse to hand over documents related to the financing of yachts and private jets owned by potentially sanctioned people. learn extra

On March 3, Credit Suisse mentioned no shopper knowledge had been erased within the financial institution when it asked investors to destroy paperwork referring to a transaction final November, reacting to an additional Financial Occasions report related 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 internal doc seen by Reuters. learn extra

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

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Reporting by Paul Carrel Editing by Frances Kerry

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