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

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

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April 30 (Reuters) - A gaggle of individuals and entities have filed a category motion lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss bank misled buyers over business dealings associated to Russian oligarchs, law firm Pomerantz LLP said.

Credit Suisse did not 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 a statement issued late on Friday.

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"The grievance alleges that, throughout the category interval, defendants made materially false and deceptive statements concerning the company's business, operations, and compliance insurance policies," Pomerantz said within the assertion.

The regulation agency alleged disclosure shortcomings around a securitisation deal. It cited in its assertion a Financial Instances story from February by which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest prospects' yachts and personal jets, in an uncommon use of derivatives to offload the dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Occasions mentioned that after the publication of its article, Credit Suisse mentioned in a statement that the transaction “priced according to different important threat transactions, provided aggressive investment and hedging phrases for our skilled investor clients whereas growing 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 handy over paperwork associated to the financing of yachts and personal jets owned by probably sanctioned individuals. learn more

On March 3, Credit Suisse said no shopper information had been erased inside the financial institution when it asked investors to destroy paperwork regarding a transaction last November, reacting to an extra Monetary Times report associated to oligarchs.

Credit score Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss financial institution mentioned on March 28 in an inner doc seen by Reuters. read extra

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