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

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

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April 30 (Reuters) - A bunch of people and entities have filed a class motion lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over business dealings related to Russian oligarchs, regulation firm Pomerantz LLP mentioned.

Credit Suisse didn't comment when contacted by Reuters.

The lawsuit, filed in a New York district court, is on behalf of individuals and entities who acquired Credit 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, throughout the class interval, defendants made materially false and deceptive statements regarding the company's business, operations, and compliance insurance policies," Pomerantz stated in the assertion.

The legislation agency 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 uncommon use of derivatives to dump the risks associated with 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 according to different significant threat transactions, supplied competitive funding and hedging terms for our professional investor purchasers whereas increasing the capital flexibility of the financial institution.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit score Suisse handy over paperwork associated to the financing of yachts and personal jets owned by probably sanctioned people. read more

On March 3, Credit score Suisse mentioned no consumer knowledge had been erased inside the bank when it requested traders to destroy paperwork relating to a transaction final November, reacting to an additional Monetary Times report related to oligarchs.

Credit 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 inner doc seen by Reuters. learn more

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

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Reporting by Paul Carrel Editing by Frances Kerry

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