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 office in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Photograph

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April 30 (Reuters) - A bunch of people and entities have filed a category motion lawsuit towards Credit Suisse (CSGN.S), alleging that the Swiss bank misled traders over enterprise dealings related to Russian oligarchs, law firm Pomerantz LLP said.

Credit Suisse didn't remark 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 mentioned in an announcement issued late on Friday.

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"The grievance alleges that, throughout the category period, defendants made materially false and misleading statements regarding the corporate's business, operations, and compliance policies," Pomerantz mentioned in the statement.

The regulation agency alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Financial Times story from February during 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 dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Times mentioned that after the publication of its article, Credit Suisse stated in an announcement that the transaction “priced in line with other important danger transactions, offered competitive investment and hedging phrases for our professional investor purchasers whereas growing 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. read extra

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

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

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

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Reporting by Paul Carrel Enhancing by Frances Kerry

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