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

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

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April 30 (Reuters) - A group of people and entities have filed a category action lawsuit towards Credit score Suisse (CSGN.S), alleging that the Swiss bank misled investors over business dealings associated to Russian oligarchs, law agency Pomerantz LLP mentioned.

Credit Suisse didn't 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 stated in a statement issued late on Friday.

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"The grievance alleges that, all through the class interval, defendants made materially false and misleading statements regarding the corporate's enterprise, operations, and compliance policies," Pomerantz stated in the statement.

The law agency alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Monetary Instances story from February in which 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 offload the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Occasions said that after the publication of its article, Credit score Suisse mentioned in a press release that the transaction “priced in keeping with different vital threat transactions, offered competitive funding and hedging terms for our professional investor clients whereas rising the capital flexibility of the bank.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit Suisse at hand over paperwork associated to the financing of yachts and private jets owned by doubtlessly sanctioned individuals. learn extra

On March 3, Credit score Suisse mentioned no client data had been erased within the financial institution when it requested traders to destroy paperwork relating to a transaction final November, reacting to an additional Monetary Instances report related to oligarchs.

Credit Suisse stopped pursuing new enterprise in Russia after the invasion of Ukraine on Feb. 24, the Swiss financial institution said on March 28 in an internal doc seen by Reuters. learn extra

Credit Suisse, which reported a first-quarter loss this week, has been dented by a sequence of costly hits and a collection of legal circumstances that it has described as legacy issues. read extra

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Reporting by Paul Carrel Modifying by Frances Kerry

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