Credit score Suisse sued in U.S. over alleged business related 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 Photo

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

Credit Suisse didn't comment when contacted by Reuters.

The lawsuit, filed in a New York district court docket, is on behalf of people 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 interval, defendants made materially false and misleading statements concerning the corporate's business, operations, and compliance insurance policies," Pomerantz mentioned in the statement.

The legislation agency alleged disclosure shortcomings around a securitisation deal. It cited in its assertion a Financial Times 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 offload the dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Instances said that after the publication of its article, Credit Suisse mentioned in a statement that the transaction “priced consistent with other vital threat transactions, provided aggressive funding and hedging terms for our skilled investor clients while growing 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 handy over paperwork related to the financing of yachts and private jets owned by doubtlessly sanctioned individuals. learn more

On March 3, Credit Suisse stated no shopper knowledge had been erased throughout the financial institution when it requested traders to destroy documents referring to a transaction last November, reacting to an extra Monetary 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 mentioned on March 28 in an inner doc seen by Reuters. read more

Credit Suisse, which reported a first-quarter loss this week, has been dented by a sequence of expensive hits and a series of authorized cases that it has described as legacy matters. read extra

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Reporting by Paul Carrel Modifying by Frances Kerry

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