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

The logo of Swiss financial institution 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 class motion lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss bank misled buyers over enterprise dealings related to Russian oligarchs, legislation agency Pomerantz LLP stated.

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 an announcement issued late on Friday.

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

The law agency alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Monetary Instances story from February by 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 offload the dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Instances stated that after the publication of its article, Credit Suisse said in an announcement that the transaction “priced in step with different vital danger transactions, offered competitive investment and hedging phrases for our professional investor shoppers whereas growing the capital flexibility of the bank.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit Suisse handy over paperwork related to the financing of yachts and private jets owned by potentially sanctioned individuals. read extra

On March 3, Credit Suisse stated no client data had been erased throughout the financial institution when it asked traders to destroy paperwork relating to a transaction final November, reacting to a further Financial Instances 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 said on March 28 in an inside document seen by Reuters. read extra

Credit Suisse, which reported a first-quarter loss this week, has been dented by a collection of pricey hits and a series of legal cases that it has described as legacy issues. read more

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Reporting by Paul Carrel Modifying by Frances Kerry

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