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

The brand of Swiss financial institution Credit Suisse is seen at a department workplace in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Picture

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April 30 (Reuters) - A gaggle of people and entities have filed a class action lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss bank misled traders over enterprise dealings related to Russian oligarchs, law firm Pomerantz LLP said.

Credit Suisse didn't remark when contacted by Reuters.

The lawsuit, filed in a New York district courtroom, is on behalf of people and entities who acquired Credit 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 grievance alleges that, throughout the class period, defendants made materially false and deceptive statements concerning the corporate's enterprise, operations, and compliance policies," Pomerantz said in the assertion.

The law firm alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Monetary Times story from February in 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 Occasions said that after the publication of its article, Credit Suisse mentioned in a press release that the transaction “priced in line with other significant risk transactions, provided competitive investment and hedging terms for our skilled investor clients while 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 documents associated to the financing of yachts and private jets owned by potentially sanctioned people. learn extra

On March 3, Credit score Suisse said no consumer data had been erased within the financial institution when it requested investors to destroy paperwork relating to a transaction final November, reacting to a further Financial Times report related to oligarchs.

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

Credit score 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 matters. learn more

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Reporting by Paul Carrel Enhancing by Frances Kerry

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