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

The brand of Swiss financial institution Credit score 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 individuals and entities have filed a class motion lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss bank misled buyers over business dealings associated to Russian oligarchs, law firm Pomerantz LLP stated.

Credit Suisse did not remark when contacted by Reuters.

The lawsuit, filed in a New York district court docket, is on behalf of individuals and entities who acquired Credit Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz mentioned 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 misleading statements regarding the corporate's business, operations, and compliance policies," Pomerantz said in the statement.

The law firm alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Financial Occasions story from February through which the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest prospects' yachts and private jets, in an unusual use of derivatives to offload the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Occasions stated that after the publication of its article, Credit Suisse stated in a statement that the transaction “priced in step with other significant risk transactions, supplied competitive funding and hedging terms for our skilled investor clients whereas rising the capital flexibility of the financial institution.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit Suisse handy over paperwork associated to the financing of yachts and personal jets owned by potentially sanctioned individuals. learn extra

On March 3, Credit Suisse said no consumer information had been erased throughout the financial institution when it asked buyers to destroy paperwork regarding a transaction last November, reacting to an additional Monetary Instances 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 doc seen by Reuters. read more

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a collection of pricey hits and a sequence of legal instances that it has described as legacy matters. read more

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Reporting by Paul Carrel Enhancing by Frances Kerry

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