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

The brand of Swiss bank Credit 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 bunch of individuals and entities have filed a category motion lawsuit towards Credit Suisse (CSGN.S), alleging that the Swiss bank misled investors over enterprise dealings related to Russian oligarchs, regulation firm 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 mentioned in an announcement issued late on Friday.

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"The grievance alleges that, throughout the class interval, defendants made materially false and deceptive statements relating to the corporate's enterprise, operations, and compliance insurance policies," Pomerantz mentioned in the assertion.

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

The Monetary Times said that after the publication of its article, Credit score Suisse stated in a statement that the transaction “priced according to different vital threat transactions, offered aggressive funding and hedging phrases for our professional investor clients while growing the capital flexibility of the financial institution.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit score Suisse at hand over documents related to the financing of yachts and private jets owned by probably sanctioned individuals. learn more

On March 3, Credit Suisse mentioned no client data had been erased throughout the bank when it requested buyers to destroy paperwork regarding a transaction last November, reacting to an extra Monetary 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 internal document seen by Reuters. read extra

Credit Suisse, which reported a first-quarter loss this week, has been dented by a series of pricey hits and a series of authorized instances that it has described as legacy issues. read extra

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Reporting by Paul Carrel Editing by Frances Kerry

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