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

The emblem of Swiss financial institution Credit score 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 people and entities have filed a class action lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss bank misled investors over enterprise dealings associated to Russian oligarchs, law agency Pomerantz LLP said.

Credit Suisse did not remark when contacted by Reuters.

The lawsuit, filed in a New York district court, is on behalf of people and entities who acquired Credit score 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, throughout the category interval, defendants made materially false and misleading statements regarding the corporate's enterprise, operations, and compliance policies," Pomerantz stated within the assertion.

The regulation firm alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Financial Times story from February through 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 unusual use of derivatives to dump the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Instances stated that after the publication of its article, Credit Suisse said in an announcement that the transaction “priced in keeping with different vital risk transactions, provided aggressive funding and hedging terms for our skilled investor shoppers whereas 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 associated to the financing of yachts and private jets owned by doubtlessly sanctioned people. read extra

On March 3, Credit Suisse stated no consumer data had been erased inside the bank when it asked buyers to destroy paperwork regarding a transaction final November, reacting to an additional Financial Times report related to oligarchs.

Credit 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 extra

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a series of pricey hits and a series of authorized circumstances 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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