Credit Suisse sued in U.S. over alleged business associated 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

Register

April 30 (Reuters) - A bunch of people and entities have filed a category motion lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over business dealings associated to Russian oligarchs, regulation agency Pomerantz LLP stated.

Credit Suisse did not 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 Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz said in a statement issued late on Friday.

Register

"The criticism alleges that, throughout the category period, defendants made materially false and deceptive statements relating to the corporate's enterprise, operations, and compliance policies," Pomerantz mentioned within the assertion.

The law firm alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial Occasions story from February in 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 uncommon use of derivatives to dump the dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Times mentioned that after the publication of its article, Credit Suisse said in an announcement that the transaction “priced in keeping with different important threat transactions, offered competitive investment and hedging terms for our skilled investor clients while rising the capital flexibility of the bank.”

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

On March 3, Credit Suisse mentioned no shopper data had been erased throughout the bank when it requested investors to destroy paperwork referring to a transaction final November, reacting to an extra Financial Instances report related to oligarchs.

Credit score Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank said on March 28 in an internal doc seen by Reuters. learn more

Credit Suisse, which reported a first-quarter loss this week, has been dented by a collection of expensive hits and a series of legal instances that it has described as legacy issues. read extra

Register

Reporting by Paul Carrel Editing by Frances Kerry

Our Requirements: The Thomson Reuters Belief Ideas.