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

The brand of Swiss bank Credit score Suisse is seen at a department 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 category action lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over enterprise dealings associated to Russian oligarchs, legislation agency Pomerantz LLP stated.

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 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, all through the class period, defendants made materially false and misleading statements regarding the company's business, operations, and compliance policies," Pomerantz stated within the statement.

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

The Monetary Instances stated that after the publication of its article, Credit score Suisse mentioned in a press release that the transaction “priced in step with other significant threat transactions, provided aggressive investment and hedging phrases for our professional investor purchasers while growing 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 at hand over documents associated to the financing of yachts and private jets owned by probably sanctioned people. learn extra

On March 3, Credit Suisse stated no shopper knowledge had been erased throughout the financial institution when it asked traders to destroy paperwork referring to a transaction final November, reacting to a further 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 bank said on March 28 in an inner document seen by Reuters. read extra

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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