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

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

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April 30 (Reuters) - A group of people and entities have filed a category motion lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over enterprise dealings related to Russian oligarchs, legislation agency Pomerantz LLP said.

Credit Suisse did not comment when contacted by Reuters.

The lawsuit, filed in a New York district courtroom, is on behalf of people and entities who acquired Credit 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 category period, defendants made materially false and misleading statements regarding the corporate's enterprise, operations, and compliance insurance policies," Pomerantz said in the statement.

The legislation firm alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial Times story from February by which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest prospects' yachts and private jets, in an uncommon use of derivatives to dump the dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Occasions mentioned that after the publication of its article, Credit Suisse mentioned in a statement that the transaction “priced consistent with different vital threat transactions, supplied aggressive funding and hedging phrases for our skilled investor clients while rising 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 related to the financing of yachts and personal jets owned by probably sanctioned individuals. learn extra

On March 3, Credit score Suisse mentioned no client knowledge had been erased throughout the financial institution when it asked traders to destroy documents relating to a transaction last November, reacting to a further Financial 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 mentioned on March 28 in an internal document seen by Reuters. read more

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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