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

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April 30 (Reuters) - A group of individuals and entities have filed a class action lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over enterprise dealings related to Russian oligarchs, regulation firm Pomerantz LLP mentioned.

Credit Suisse didn't remark when contacted by Reuters.

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

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"The complaint alleges that, all through the class interval, defendants made materially false and misleading statements relating to the corporate's business, operations, and compliance policies," Pomerantz mentioned within the assertion.

The regulation firm alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Financial 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 offload the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Occasions stated that after the publication of its article, Credit score Suisse stated in a press release that the transaction “priced in step with other significant risk transactions, provided aggressive funding and hedging terms for our skilled investor clients while rising the capital flexibility of the bank.”

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

On March 3, Credit score Suisse mentioned no shopper data had been erased throughout the financial institution when it requested traders to destroy documents referring to a transaction final November, reacting to a further 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 bank mentioned 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 series of expensive hits and a series of authorized circumstances that it has described as legacy matters. read extra

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Reporting by Paul Carrel Enhancing by Frances Kerry

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