Credit score Suisse sued in U.S. over alleged business associated to oligarchs

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

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April 30 (Reuters) - A gaggle of individuals and entities have filed a class motion lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss bank misled traders over enterprise dealings related to Russian oligarchs, legislation firm Pomerantz LLP mentioned.

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

The lawsuit, filed in a New York district court, is on behalf of people 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 grievance alleges that, throughout the class interval, defendants made materially false and deceptive statements concerning the corporate's enterprise, operations, and compliance insurance policies," Pomerantz mentioned in the assertion.

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

The Financial Instances mentioned that after the publication of its article, Credit score Suisse mentioned in a statement that the transaction “priced according to different important risk transactions, supplied aggressive investment and hedging terms for our professional investor purchasers while growing the capital flexibility of the bank.”

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 probably sanctioned people. learn more

On March 3, Credit Suisse stated no consumer information had been erased throughout the bank when it requested investors to destroy documents referring to a transaction last November, reacting to an additional Financial Occasions report related to oligarchs.

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

Credit Suisse, which reported a first-quarter loss this week, has been dented by a series of expensive hits and a collection of legal circumstances that it has described as legacy matters. learn more

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Reporting by Paul Carrel Editing by Frances Kerry

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