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

The logo of Swiss financial institution Credit Suisse is seen at a branch office in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Picture

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April 30 (Reuters) - A gaggle of individuals and entities have filed a category motion lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over business dealings associated to Russian oligarchs, regulation firm Pomerantz LLP mentioned.

Credit score Suisse did not 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 mentioned in a press release issued late on Friday.

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"The grievance alleges that, throughout the class period, defendants made materially false and misleading statements concerning the company's business, operations, and compliance policies," Pomerantz said in the assertion.

The law agency alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Monetary 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 unusual use of derivatives to offload the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Times stated that after the publication of its article, Credit Suisse stated in a press release that the transaction “priced in keeping with other vital threat transactions, offered aggressive funding and hedging phrases for our skilled investor clients while growing the capital flexibility of the financial institution.”

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

On March 3, Credit score Suisse said no shopper knowledge had been erased throughout the bank when it asked buyers to destroy paperwork regarding a transaction last November, reacting to a further Monetary Occasions report related to oligarchs.

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

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