Credit score Suisse sued in U.S. over alleged enterprise related 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 Photograph

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April 30 (Reuters) - A bunch of individuals and entities have filed a category action lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss bank misled buyers over business dealings associated to Russian oligarchs, regulation firm 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 press release issued late on Friday.

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"The grievance alleges that, throughout the category period, defendants made materially false and deceptive statements concerning the company's business, operations, and compliance policies," Pomerantz said within the assertion.

The law firm alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial Times story from February by which the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest customers' yachts and personal jets, in an unusual use of derivatives to dump the dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Times mentioned that after the publication of its article, Credit score Suisse said in a statement that the transaction “priced in step with different important danger transactions, offered competitive funding and hedging phrases for our professional investor purchasers while increasing the capital flexibility of the financial institution.”

The lawsuit also 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 private jets owned by doubtlessly sanctioned individuals. read more

On March 3, Credit Suisse mentioned no client knowledge had been erased within the financial institution when it requested investors 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 said on March 28 in an inside doc seen by Reuters. read more

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 issues. learn more

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Reporting by Paul Carrel Enhancing by Frances Kerry

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