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

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

Register

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

Credit score Suisse didn't remark when contacted by Reuters.

The lawsuit, filed in a New York district courtroom, 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 statement issued late on Friday.

Register

"The complaint alleges that, all through the class interval, defendants made materially false and misleading statements relating to the company's enterprise, operations, and compliance insurance policies," Pomerantz mentioned within the assertion.

The regulation firm alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Monetary Instances story from February wherein 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 dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Instances mentioned that after the publication of its article, Credit score Suisse said in an announcement that the transaction “priced according to different important danger transactions, offered competitive investment and hedging phrases for our professional investor shoppers whereas growing the capital flexibility of the bank.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit score Suisse handy over documents associated to the financing of yachts and personal jets owned by probably sanctioned people. learn more

On March 3, Credit Suisse mentioned no consumer knowledge had been erased within the bank when it asked traders to destroy paperwork relating to a transaction last November, reacting to an extra Financial Instances report related to oligarchs.

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

Credit score 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. read extra

Register

Reporting by Paul Carrel Editing by Frances Kerry

Our Standards: The Thomson Reuters Trust Principles.