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

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

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April 30 (Reuters) - A gaggle of people and entities have filed a category action lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over enterprise dealings associated 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 docket, 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 period, defendants made materially false and deceptive statements regarding the company's business, operations, and compliance policies," Pomerantz said within the statement.

The regulation firm alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Financial Times story from February in which the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest clients' yachts and personal jets, in an uncommon use of derivatives to dump the dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Instances said that after the publication of its article, Credit score Suisse stated in a statement that the transaction “priced in line with different significant risk transactions, provided aggressive investment and hedging terms for our professional investor clients while increasing the capital flexibility of the bank.”

The lawsuit additionally 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 people. learn extra

On March 3, Credit score Suisse said no client information had been erased inside the bank when it requested buyers to destroy documents regarding a transaction last November, reacting to an extra Financial Instances report associated to oligarchs.

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

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

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Reporting by Paul Carrel Enhancing by Frances Kerry

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