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 office 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 score Suisse (CSGN.S), alleging that the Swiss bank misled traders over business dealings associated to Russian oligarchs, law firm Pomerantz LLP mentioned.

Credit 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 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, throughout the class interval, defendants made materially false and deceptive statements relating to the company's business, operations, and compliance policies," Pomerantz stated within the statement.

The law firm alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial Instances story from February during which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest clients' yachts and personal jets, in an unusual use of derivatives to dump the dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Times said that after the publication of its article, Credit score Suisse said in an announcement that the transaction “priced in keeping with other significant risk transactions, supplied aggressive investment and hedging terms for our professional investor clients while growing 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 paperwork associated to the financing of yachts and personal jets owned by potentially sanctioned individuals. learn more

On March 3, Credit Suisse said no consumer knowledge had been erased within the financial institution when it requested investors to destroy documents relating to a transaction final November, reacting to a further Monetary Occasions report related to oligarchs.

Credit Suisse stopped pursuing new enterprise in Russia after the invasion of Ukraine on Feb. 24, the Swiss financial institution said 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 pricey hits and a sequence of legal cases 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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