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

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

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

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 score Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz said in a press release issued late on Friday.

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"The grievance alleges that, all through the class period, defendants made materially false and misleading statements regarding the company's enterprise, operations, and compliance insurance policies," Pomerantz mentioned in the assertion.

The legislation firm alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Financial Instances story from February through which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest clients' yachts and personal jets, in an uncommon use of derivatives to dump the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Instances stated that after the publication of its article, Credit score Suisse said in an announcement that the transaction “priced consistent with different important danger transactions, offered aggressive funding and hedging terms for our skilled investor purchasers whereas increasing the capital flexibility of the bank.”

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

On March 3, Credit Suisse mentioned no consumer data had been erased throughout the financial institution when it asked traders to destroy documents referring to a transaction last November, reacting to an additional Financial Times report related to oligarchs.

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

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a collection of pricey hits and a sequence of authorized cases that it has described as legacy matters. learn extra

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Reporting by Paul Carrel Enhancing by Frances Kerry

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