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

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

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April 30 (Reuters) - A group of people and entities have filed a category motion lawsuit towards Credit Suisse (CSGN.S), alleging that the Swiss bank misled buyers over business dealings related to Russian oligarchs, regulation agency Pomerantz LLP mentioned.

Credit score Suisse didn't 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 grievance alleges that, all through the category period, defendants made materially false and deceptive statements regarding the company's enterprise, operations, and compliance insurance policies," Pomerantz stated within the assertion.

The legislation firm alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Monetary Times story from February through which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest clients' yachts and private jets, in an unusual use of derivatives to dump the dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Occasions mentioned that after the publication of its article, Credit Suisse mentioned in a press release that the transaction “priced in line with different important risk transactions, offered aggressive investment and hedging terms for our skilled investor purchasers whereas rising the capital flexibility of the bank.”

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

On March 3, Credit Suisse said no client information had been erased throughout the financial institution when it requested buyers to destroy documents regarding a transaction final November, reacting to an additional Monetary 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 mentioned on March 28 in an inside doc seen by Reuters. learn extra

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

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Reporting by Paul Carrel Editing by Frances Kerry

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