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

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April 30 (Reuters) - A group of people and entities have filed a category action lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss bank misled investors over enterprise dealings associated to Russian oligarchs, legislation agency Pomerantz LLP stated.

Credit score 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 score 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 class period, defendants made materially false and misleading statements relating to the company's enterprise, operations, and compliance policies," Pomerantz mentioned in the assertion.

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

The Monetary Instances stated that after the publication of its article, Credit Suisse mentioned in a statement that the transaction “priced according to different significant threat transactions, provided aggressive funding and hedging phrases for our professional investor clients whereas increasing the capital flexibility of the financial institution.”

The lawsuit also referred to a request made by U.S. lawmakers in March for Credit score Suisse to hand over paperwork associated to the financing of yachts and private jets owned by doubtlessly sanctioned people. read more

On March 3, Credit Suisse stated no consumer knowledge had been erased throughout the financial institution when it requested traders to destroy documents relating to a transaction final November, reacting to an additional Financial Occasions report related to oligarchs.

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

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

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Reporting by Paul Carrel Editing by Frances Kerry

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