Credit score 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 Photograph

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April 30 (Reuters) - A gaggle of people and entities have filed a class motion lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over enterprise dealings associated to Russian oligarchs, legislation agency Pomerantz LLP stated.

Credit score Suisse didn't 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 said in a press release issued late on Friday.

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"The complaint alleges that, all through the class period, defendants made materially false and misleading statements regarding the corporate's enterprise, operations, and compliance insurance policies," Pomerantz said within the statement.

The law firm alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Monetary Instances story from February in which the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest clients' yachts and private jets, in an unusual use of derivatives to dump the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Occasions stated that after the publication of its article, Credit score Suisse mentioned in a statement that the transaction “priced in keeping with different important danger transactions, offered aggressive funding and hedging terms for our professional investor shoppers 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 score Suisse at hand over paperwork related to the financing of yachts and personal jets owned by doubtlessly sanctioned people. read more

On March 3, Credit score Suisse mentioned no consumer data had been erased throughout the financial institution when it requested traders to destroy documents referring to a transaction final November, reacting to an extra Financial Times report associated to oligarchs.

Credit score Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank said 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 series of pricey hits and a sequence of legal circumstances 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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