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

The logo 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 group of individuals and entities have filed a class action lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over business dealings related to Russian oligarchs, legislation firm Pomerantz LLP said.

Credit score Suisse did not remark when contacted by Reuters.

The lawsuit, filed in a New York district court, 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 grievance alleges that, throughout the class period, defendants made materially false and misleading statements relating to the corporate's enterprise, operations, and compliance policies," Pomerantz mentioned in the assertion.

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

The Financial Instances said that after the publication of its article, Credit Suisse stated in an announcement that the transaction “priced according to different significant danger transactions, provided competitive investment and hedging terms for our professional investor purchasers whereas increasing the capital flexibility of the bank.”

The lawsuit additionally 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 individuals. learn extra

On March 3, Credit score Suisse said no consumer data had been erased inside the bank when it requested investors to destroy paperwork referring to a transaction last November, reacting to an extra Financial Instances report associated to oligarchs.

Credit score Suisse stopped pursuing new enterprise in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank mentioned on March 28 in an internal doc seen by Reuters. read extra

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

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Reporting by Paul Carrel Enhancing by Frances Kerry

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