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

The emblem 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 group of people and entities have filed a category motion lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over enterprise dealings associated to Russian oligarchs, law agency Pomerantz LLP said.

Credit 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 stated in a statement issued late on Friday.

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"The criticism alleges that, throughout the class interval, defendants made materially false and deceptive statements regarding the company's business, operations, and compliance insurance policies," Pomerantz stated within the statement.

The legislation agency alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Monetary Times story from February through which the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest prospects' yachts and private jets, in an uncommon use of derivatives to dump the dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Times mentioned that after the publication of its article, Credit score Suisse said in a press release that the transaction “priced in line with different vital risk transactions, provided competitive funding and hedging phrases for our professional investor shoppers 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 handy over documents associated to the financing of yachts and personal jets owned by probably sanctioned people. read extra

On March 3, Credit score Suisse stated no client data had been erased inside the financial institution when it requested buyers to destroy documents relating to a transaction last November, reacting to an extra 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 inside document seen by Reuters. read more

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

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Reporting by Paul Carrel Enhancing by Frances Kerry

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