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

The brand of Swiss financial institution Credit score Suisse is seen at a department office in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Photo

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April 30 (Reuters) - A group of individuals and entities have filed a class motion lawsuit towards Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over enterprise dealings related to Russian oligarchs, law firm Pomerantz LLP stated.

Credit score Suisse didn't comment when contacted by Reuters.

The lawsuit, filed in a New York district courtroom, is on behalf of people and entities who acquired Credit Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz stated in an announcement issued late on Friday.

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"The criticism alleges that, all through the category interval, defendants made materially false and misleading statements relating to the corporate's business, operations, and compliance policies," Pomerantz mentioned within the statement.

The law firm alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Financial Times story from February through which the newspaper reported that Credit score 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 risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Times stated that after the publication of its article, Credit score Suisse stated in a press release that the transaction “priced consistent with different significant threat transactions, supplied competitive funding and hedging phrases for our professional investor clients while increasing the capital flexibility of the financial institution.”

The lawsuit also referred to a request made by U.S. lawmakers in March for Credit Suisse handy over documents related to the financing of yachts and private jets owned by doubtlessly sanctioned individuals. learn more

On March 3, Credit Suisse stated no shopper data had been erased within the bank when it asked investors to destroy documents referring to a transaction last November, reacting to an extra Monetary Instances report related to oligarchs.

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

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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