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

The emblem of Swiss financial institution 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 gaggle of people and entities have filed a category motion lawsuit towards Credit score Suisse (CSGN.S), alleging that the Swiss bank misled traders over enterprise dealings related 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 stated in a statement issued late on Friday.

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"The criticism alleges that, throughout the class period, defendants made materially false and deceptive statements relating to the corporate's enterprise, operations, and compliance insurance policies," Pomerantz stated within the assertion.

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

The Financial Instances said that after the publication of its article, Credit score Suisse said in an announcement that the transaction “priced consistent with different important threat transactions, supplied competitive funding and hedging phrases for our skilled investor shoppers whereas rising 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 related to the financing of yachts and personal jets owned by probably sanctioned individuals. learn extra

On March 3, Credit score Suisse said no shopper knowledge had been erased throughout the financial institution when it requested traders to destroy paperwork relating to a transaction last November, reacting to an additional Financial Occasions report related to oligarchs.

Credit Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss financial institution stated on March 28 in an inside document seen by Reuters. learn more

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a collection of costly hits and a series of authorized instances that it has described as legacy issues. read more

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Reporting by Paul Carrel Editing by Frances Kerry

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