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

The logo of Swiss financial institution Credit 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 category action lawsuit towards Credit Suisse (CSGN.S), alleging that the Swiss bank misled buyers over enterprise dealings related to Russian oligarchs, legislation agency Pomerantz LLP mentioned.

Credit Suisse did not comment when contacted by Reuters.

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

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"The complaint alleges that, throughout the category interval, defendants made materially false and misleading statements concerning the corporate's enterprise, operations, and compliance policies," Pomerantz said within the statement.

The regulation agency alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial Times story from February through which 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 offload the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Times said that after the publication of its article, Credit score Suisse said in a press release that the transaction “priced in step with other significant danger transactions, offered aggressive investment and hedging phrases for our professional investor shoppers while rising the capital flexibility of the bank.”

The lawsuit additionally 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 more

On March 3, Credit score Suisse stated no shopper knowledge had been erased throughout the financial institution when it asked traders to destroy documents regarding a transaction final November, reacting to a further Financial Times report associated to oligarchs.

Credit Suisse stopped pursuing new enterprise in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank mentioned on March 28 in an internal document seen by Reuters. learn extra

Credit Suisse, which reported a first-quarter loss this week, has been dented by a sequence of pricey hits and a collection of legal circumstances that it has described as legacy matters. learn more

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Reporting by Paul Carrel Modifying by Frances Kerry

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