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

The emblem 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 group of people and entities have filed a class motion lawsuit towards Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over enterprise dealings associated to Russian oligarchs, regulation firm Pomerantz LLP said.

Credit Suisse didn't remark when contacted by Reuters.

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

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"The complaint alleges that, all through the class period, defendants made materially false and deceptive statements relating to the company's enterprise, operations, and compliance insurance policies," Pomerantz said in the statement.

The regulation firm alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Monetary Occasions story from February through 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 dump the dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Occasions said that after the publication of its article, Credit score Suisse mentioned in an announcement that the transaction “priced in line with other important risk transactions, provided aggressive funding and hedging phrases for our professional investor clients whereas rising the capital flexibility of the financial institution.”

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

On March 3, Credit Suisse said no shopper data had been erased throughout the bank when it asked buyers to destroy documents relating to a transaction last November, reacting to an additional Monetary Instances report associated 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. learn extra

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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