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

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

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

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 a press release issued late on Friday.

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"The criticism alleges that, throughout the class period, defendants made materially false and misleading statements relating to the corporate's enterprise, operations, and compliance insurance policies," Pomerantz stated within the statement.

The law firm alleged disclosure shortcomings around a securitisation deal. It cited in its assertion a Monetary Times story from February during which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest prospects' yachts and personal jets, in an unusual use of derivatives to dump the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Instances mentioned that after the publication of its article, Credit Suisse mentioned in a statement that the transaction “priced in step with different important risk transactions, supplied aggressive investment and hedging terms for our professional investor purchasers while increasing the capital flexibility of the bank.”

The lawsuit additionally 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 private jets owned by probably sanctioned individuals. read more

On March 3, Credit Suisse stated no consumer data had been erased within the financial institution when it asked buyers to destroy documents relating to a transaction final November, reacting to an additional Financial Instances report associated to oligarchs.

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

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

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Reporting by Paul Carrel Editing by Frances Kerry

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