Credit Suisse sued in U.S. over alleged business 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 Picture

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April 30 (Reuters) - A group of people and entities have filed a category motion lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over enterprise dealings associated to Russian oligarchs, legislation firm Pomerantz LLP said.

Credit Suisse didn't comment when contacted by Reuters.

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

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"The grievance alleges that, throughout the class period, defendants made materially false and misleading statements concerning the company's business, operations, and compliance policies," Pomerantz said within the statement.

The law agency alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial Times story from February by which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest customers' yachts and private jets, in an unusual use of derivatives to dump the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Times stated that after the publication of its article, Credit score Suisse stated in a statement that the transaction “priced according to different vital danger transactions, offered aggressive investment and hedging terms for our skilled investor shoppers while increasing the capital flexibility of the financial institution.”

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

On March 3, Credit score Suisse mentioned no shopper knowledge had been erased inside the financial institution when it requested investors to destroy paperwork regarding a transaction last November, reacting to a further Monetary Instances 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 doc seen by Reuters. read more

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

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Reporting by Paul Carrel Editing by Frances Kerry

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