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

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

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April 30 (Reuters) - A bunch of individuals and entities have filed a category motion lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss bank misled buyers over enterprise dealings related to Russian oligarchs, regulation agency Pomerantz LLP said.

Credit score Suisse did not comment when contacted by Reuters.

The lawsuit, filed in a New York district courtroom, is on behalf of individuals 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.

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"The criticism alleges that, throughout the category interval, defendants made materially false and deceptive statements regarding the company's enterprise, operations, and compliance policies," Pomerantz said within the assertion.

The regulation firm alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Monetary Occasions story from February wherein the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest prospects' yachts and private jets, in an unusual use of derivatives to dump the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Instances said that after the publication of its article, Credit Suisse stated in an announcement that the transaction “priced consistent with other significant risk transactions, supplied aggressive funding and hedging phrases for our skilled investor shoppers while rising the capital flexibility of the financial institution.”

The lawsuit also referred to a request made by U.S. lawmakers in March for Credit score Suisse to hand over documents related to the financing of yachts and personal jets owned by probably sanctioned people. learn extra

On March 3, Credit score Suisse said no consumer data had been erased inside the financial institution when it asked investors to destroy paperwork referring to a transaction last November, reacting to an extra Monetary Instances report associated to oligarchs.

Credit 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 document seen by Reuters. learn more

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a series of costly hits and a collection of legal circumstances that it has described as legacy matters. read extra

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Reporting by Paul Carrel Modifying by Frances Kerry

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