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

The emblem 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 bunch of individuals and entities have filed a category action lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over enterprise dealings associated to Russian oligarchs, law firm Pomerantz LLP stated.

Credit Suisse did not 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 stated in a press release issued late on Friday.

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"The criticism alleges that, all through the class 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 round a securitisation deal. It cited in its assertion a Financial Times story from February through which the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest customers' yachts and private jets, in an unusual use of derivatives to offload the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Instances mentioned that after the publication of its article, Credit score Suisse stated in an announcement that the transaction “priced consistent with different significant danger transactions, supplied competitive funding and hedging phrases for our skilled investor purchasers whereas growing 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 documents associated to the financing of yachts and private jets owned by potentially sanctioned individuals. learn extra

On March 3, Credit score Suisse stated no consumer knowledge had been erased throughout the financial institution when it requested investors to destroy paperwork relating to a transaction last November, reacting to a further 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 stated 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 collection of pricey hits and a sequence of legal circumstances that it has described as legacy issues. learn extra

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Reporting by Paul Carrel Modifying by Frances Kerry

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