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

The logo of Swiss bank Credit Suisse is seen at a branch office in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Photograph

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April 30 (Reuters) - A bunch of people and entities have filed a category action lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss bank misled investors over business dealings related to Russian oligarchs, legislation agency Pomerantz LLP said.

Credit Suisse did not remark when contacted by Reuters.

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

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"The criticism alleges that, all through the class interval, defendants made materially false and misleading statements regarding the company's business, operations, and compliance policies," Pomerantz stated within the statement.

The law firm alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Monetary Occasions story from February in which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest customers' yachts and private jets, in an uncommon use of derivatives to dump the dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Instances mentioned that after the publication of its article, Credit score Suisse mentioned in an announcement that the transaction “priced in step with different important threat transactions, supplied aggressive funding and hedging phrases for our skilled 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 to hand over paperwork associated to the financing of yachts and personal jets owned by potentially sanctioned people. learn more

On March 3, Credit score Suisse mentioned no client information had been erased throughout the financial institution when it requested traders to destroy documents referring to a transaction last November, reacting to a further Financial Occasions report associated to oligarchs.

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

Credit Suisse, which reported a first-quarter loss this week, has been dented by a series of costly hits and a series 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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