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

The brand of Swiss bank Credit score Suisse is seen at a department workplace in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Picture

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April 30 (Reuters) - A gaggle of people and entities have filed a category motion lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over business dealings associated to Russian oligarchs, law agency Pomerantz LLP said.

Credit score Suisse didn't comment when contacted by Reuters.

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

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"The criticism alleges that, throughout the category interval, defendants made materially false and deceptive statements concerning the corporate's business, operations, and compliance insurance policies," Pomerantz stated within the statement.

The law agency alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Monetary Instances story from February wherein 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 Monetary Times mentioned that after the publication of its article, Credit score Suisse mentioned in a statement that the transaction “priced in step with different important danger transactions, supplied aggressive investment and hedging terms for our skilled investor purchasers whereas rising the capital flexibility of the bank.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit score Suisse at hand over paperwork related to the financing of yachts and private jets owned by potentially sanctioned people. read more

On March 3, Credit score Suisse said no consumer knowledge had been erased within the financial institution when it requested traders to destroy documents relating to a transaction final November, reacting to an extra Financial Instances report related to oligarchs.

Credit score Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank mentioned on March 28 in an internal document seen by Reuters. learn more

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

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Reporting by Paul Carrel Editing by Frances Kerry

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