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

The logo of Swiss financial institution Credit Suisse is seen at a branch office 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 class motion lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss bank misled investors over business dealings associated to Russian oligarchs, regulation firm Pomerantz LLP stated.

Credit Suisse did not comment when contacted by Reuters.

The lawsuit, filed in a New York district court, is on behalf of individuals and entities who acquired Credit score Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz said in an announcement issued late on Friday.

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"The grievance alleges that, throughout the category interval, defendants made materially false and deceptive statements relating to the company's business, operations, and compliance policies," Pomerantz stated within the statement.

The law firm alleged disclosure shortcomings around a securitisation deal. It cited in its assertion 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 clients' yachts and private jets, in an unusual use of derivatives to offload the dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Occasions mentioned that after the publication of its article, Credit Suisse said in an announcement that the transaction “priced consistent with other significant danger transactions, supplied competitive funding and hedging terms for our skilled investor purchasers whereas growing the capital flexibility of the financial institution.”

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

On March 3, Credit Suisse stated no client information had been erased within the bank when it asked investors to destroy paperwork regarding a transaction final November, reacting to an extra Financial Instances report associated 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 document seen by Reuters. learn more

Credit Suisse, which reported a first-quarter loss this week, has been dented by a series of expensive hits and a sequence of legal circumstances that it has described as legacy matters. learn more

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Reporting by Paul Carrel Enhancing by Frances Kerry

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