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

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

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April 30 (Reuters) - A gaggle of individuals and entities have filed a category motion lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss bank misled buyers over business dealings associated to Russian oligarchs, law agency Pomerantz LLP stated.

Credit Suisse did not comment when contacted by Reuters.

The lawsuit, filed in a New York district courtroom, is on behalf of people 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 criticism alleges that, throughout the category period, defendants made materially false and misleading statements concerning the company's business, operations, and compliance policies," Pomerantz said in the assertion.

The law agency alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Monetary Times story from February through which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest prospects' yachts and private jets, in an unusual use of derivatives to offload the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Instances said that after the publication of its article, Credit score Suisse stated in an announcement that the transaction “priced in step with other important threat transactions, provided competitive funding and hedging phrases for our professional investor purchasers whereas increasing the capital flexibility of the bank.”

The lawsuit also referred to a request made by U.S. lawmakers in March for Credit score Suisse handy over paperwork related to the financing of yachts and private jets owned by probably sanctioned individuals. learn more

On March 3, Credit score Suisse mentioned no client knowledge had been erased throughout the bank when it asked traders to destroy paperwork referring to a transaction final November, reacting to a further Financial Occasions report related to oligarchs.

Credit Suisse stopped pursuing new enterprise in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank stated on March 28 in an internal doc seen by Reuters. read more

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

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Reporting by Paul Carrel Editing by Frances Kerry

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