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

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

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

Credit Suisse didn't remark when contacted by Reuters.

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

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"The grievance alleges that, all through the category interval, defendants made materially false and deceptive statements relating to the company's business, operations, and compliance policies," Pomerantz stated in the assertion.

The legislation agency alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Financial Occasions story from February by which the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest prospects' 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 mentioned that after the publication of its article, Credit Suisse said in a press release that the transaction “priced according to other vital threat transactions, supplied aggressive investment and hedging terms for our professional investor shoppers whereas increasing the capital flexibility of the bank.”

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 people. read more

On March 3, Credit score Suisse said no consumer data had been erased throughout the financial institution when it requested traders to destroy documents referring to a transaction last November, reacting to a further Financial Instances report associated 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. read more

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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