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

The emblem of Swiss financial institution Credit 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 bunch of individuals and entities have filed a category motion lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over business dealings associated to Russian oligarchs, legislation firm Pomerantz LLP stated.

Credit Suisse didn't remark when contacted by Reuters.

The lawsuit, filed in a New York district court docket, 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 complaint alleges that, all through the category period, defendants made materially false and misleading statements regarding the corporate's enterprise, operations, and compliance insurance policies," Pomerantz said within the assertion.

The regulation firm alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Monetary Instances story from February by which the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest clients' yachts and private jets, in an uncommon use of derivatives to offload the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Occasions mentioned that after the publication of its article, Credit score Suisse stated in an announcement that the transaction “priced in keeping with different significant risk transactions, offered competitive investment and hedging phrases for our professional investor shoppers while increasing the capital flexibility of the bank.”

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

On March 3, Credit score Suisse said no client knowledge had been erased within the bank when it asked traders to destroy documents regarding a transaction final November, reacting to a further Financial Instances report related to oligarchs.

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

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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