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

The logo of Swiss financial institution Credit score Suisse is seen at a department office 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 against Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over business dealings associated to Russian oligarchs, legislation agency Pomerantz LLP stated.

Credit score Suisse did not 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 score Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz mentioned in an announcement issued late on Friday.

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"The complaint alleges that, throughout the class period, defendants made materially false and deceptive statements concerning the corporate's business, operations, and compliance insurance policies," Pomerantz said within the statement.

The legislation agency alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Monetary Times story from February during which the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest customers' yachts and personal jets, in an uncommon use of derivatives to dump the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Times mentioned that after the publication of its article, Credit score Suisse mentioned in an announcement that the transaction “priced in line with different significant risk transactions, provided aggressive funding and hedging terms for our skilled investor purchasers while increasing the capital flexibility of the financial institution.”

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

On March 3, Credit Suisse stated no shopper information had been erased inside the bank when it requested traders to destroy paperwork relating to a transaction final November, reacting to a further Monetary Times report associated 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 inner document seen by Reuters. learn extra

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

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Reporting by Paul Carrel Enhancing by Frances Kerry

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