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

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

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April 30 (Reuters) - A gaggle of people and entities have filed a category motion lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss bank misled buyers over enterprise dealings associated to Russian oligarchs, regulation firm Pomerantz LLP said.

Credit score Suisse did not comment 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 complaint alleges that, all through the category interval, defendants made materially false and misleading statements concerning the corporate's enterprise, operations, and compliance policies," Pomerantz mentioned within the assertion.

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

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

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

On March 3, Credit score Suisse stated no client knowledge had been erased within the bank when it asked buyers to destroy paperwork regarding a transaction last November, reacting to a further Monetary Instances report associated to oligarchs.

Credit Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank stated on March 28 in an inner document 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 collection of authorized circumstances that it has described as legacy matters. learn extra

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Reporting by Paul Carrel Modifying by Frances Kerry

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