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

The logo of Swiss bank Credit score Suisse is seen at a department workplace in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Picture

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April 30 (Reuters) - A bunch of people and entities have filed a class action lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss bank misled buyers over enterprise dealings related to Russian oligarchs, legislation agency Pomerantz LLP mentioned.

Credit score Suisse didn't comment when contacted by Reuters.

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

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"The criticism alleges that, all through the class period, defendants made materially false and deceptive statements regarding the corporate's business, operations, and compliance insurance policies," Pomerantz said within the statement.

The law firm alleged disclosure shortcomings around a securitisation deal. It cited in its assertion a Financial Occasions story from February during 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 offload the dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Occasions said that after the publication of its article, Credit score Suisse said in an announcement that the transaction “priced in step with different vital threat transactions, offered aggressive funding and hedging phrases for our skilled investor clients while rising the capital flexibility of the financial institution.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit Suisse to hand over paperwork related to the financing of yachts and personal jets owned by potentially sanctioned individuals. read more

On March 3, Credit Suisse stated no shopper knowledge had been erased throughout the financial institution when it asked traders to destroy documents relating to a transaction final November, reacting to an extra Monetary Occasions report related 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 doc seen by Reuters. learn extra

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

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Reporting by Paul Carrel Enhancing by Frances Kerry

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