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

The logo 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 people and entities have filed a class action lawsuit towards Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over enterprise dealings related to Russian oligarchs, legislation agency Pomerantz LLP mentioned.

Credit score Suisse did not 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 said in an announcement issued late on Friday.

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"The grievance alleges that, all through the category interval, defendants made materially false and misleading statements relating to the corporate's business, operations, and compliance insurance policies," Pomerantz stated within the statement.

The legislation firm alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial Instances story from February by 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 Monetary Occasions stated that after the publication of its article, Credit Suisse mentioned in an announcement that the transaction “priced in step with other significant risk transactions, provided aggressive investment and hedging phrases for our professional investor shoppers whereas growing the capital flexibility of the bank.”

The lawsuit also 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 personal jets owned by doubtlessly sanctioned individuals. read more

On March 3, Credit score Suisse mentioned no shopper data had been erased throughout the financial institution when it requested buyers to destroy documents referring to a transaction last November, reacting to an extra Financial Times report associated to oligarchs.

Credit score Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank said on March 28 in an inside doc seen by Reuters. read extra

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a series of pricey hits and a series of legal cases 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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