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

The emblem of Swiss bank Credit score Suisse is seen at a branch office in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Photograph

Register

April 30 (Reuters) - A group of individuals and entities have filed a class motion lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over enterprise dealings associated to Russian oligarchs, legislation firm Pomerantz LLP said.

Credit Suisse did not remark when contacted by Reuters.

The lawsuit, filed in a New York district courtroom, is on behalf of people and entities who acquired Credit score Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz mentioned in a press release issued late on Friday.

Register

"The criticism alleges that, throughout the class period, defendants made materially false and deceptive statements concerning the corporate's business, operations, and compliance policies," Pomerantz mentioned within the statement.

The law firm alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial Occasions 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 personal jets, in an unusual use of derivatives to offload the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Times mentioned that after the publication of its article, Credit Suisse mentioned in a statement that the transaction “priced in keeping with other significant threat transactions, offered competitive funding and hedging terms for our professional investor purchasers whereas increasing 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 paperwork related to the financing of yachts and personal jets owned by doubtlessly sanctioned people. learn more

On March 3, Credit score Suisse stated no consumer information had been erased inside the financial institution when it asked traders to destroy paperwork regarding a transaction last November, reacting to an extra Financial Times report related to oligarchs.

Credit score 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 inside document seen by Reuters. read extra

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

Register

Reporting by Paul Carrel Editing by Frances Kerry

Our Requirements: The Thomson Reuters Trust Principles.