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

The logo of Swiss financial institution 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 traders over business dealings associated to Russian oligarchs, law firm Pomerantz LLP mentioned.

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

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

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

The legislation agency alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial Times story from February in 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 risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Times mentioned that after the publication of its article, Credit score Suisse mentioned in a press release that the transaction “priced according to other vital threat transactions, provided aggressive investment and hedging terms for our skilled investor purchasers while growing 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 documents related to the financing of yachts and personal jets owned by potentially sanctioned people. learn more

On March 3, Credit Suisse mentioned no shopper information had been erased within the bank when it asked traders to destroy paperwork referring to a transaction final November, reacting to a further Monetary 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 mentioned on March 28 in an inner document seen by Reuters. read more

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