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

The logo of Swiss bank Credit Suisse is seen at a department office 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 class motion lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over business dealings associated to Russian oligarchs, regulation agency 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 Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz mentioned in a press release issued late on Friday.

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"The complaint alleges that, all through the class period, defendants made materially false and misleading statements regarding the corporate's enterprise, operations, and compliance policies," Pomerantz said in the assertion.

The regulation agency 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 prospects' yachts and private jets, in an uncommon use of derivatives to offload the dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Times stated that after the publication of its article, Credit Suisse stated in an announcement that the transaction “priced in step with different important threat transactions, provided competitive investment and hedging phrases for our skilled investor purchasers whereas growing the capital flexibility of the bank.”

The lawsuit also referred to a request made by U.S. lawmakers in March for Credit Suisse to hand over documents associated to the financing of yachts and personal jets owned by doubtlessly sanctioned individuals. read extra

On March 3, Credit score Suisse stated no shopper information had been erased inside the bank when it asked buyers to destroy documents referring to a transaction last November, reacting to an additional Financial Instances report associated to oligarchs.

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

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