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

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

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April 30 (Reuters) - A bunch of people and entities have filed a category action lawsuit in opposition to 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 people and entities who acquired Credit Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz stated in a press release issued late on Friday.

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"The criticism alleges that, throughout the class period, defendants made materially false and misleading statements concerning the company's enterprise, operations, and compliance policies," Pomerantz stated within the statement.

The legislation firm alleged disclosure shortcomings around a securitisation deal. It cited in its assertion a Monetary 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 uncommon use of derivatives to dump the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Occasions stated that after the publication of its article, Credit Suisse stated in a press release that the transaction “priced consistent with different significant threat transactions, supplied competitive investment and hedging terms for our skilled investor clients whereas growing the capital flexibility of the bank.”

The lawsuit also referred to a request made by U.S. lawmakers in March for Credit score 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 mentioned no consumer data had been erased throughout the financial institution when it asked investors to destroy paperwork relating to a transaction last November, reacting to an additional 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 financial institution stated 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 expensive hits and a collection of authorized cases that it has described as legacy matters. read more

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Reporting by Paul Carrel Modifying by Frances Kerry

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