Credit Suisse sued in U.S. over alleged business 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 Photograph

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April 30 (Reuters) - A bunch of individuals and entities have filed a class motion lawsuit towards Credit score Suisse (CSGN.S), alleging that the Swiss bank misled investors over business dealings related to Russian oligarchs, law firm Pomerantz LLP said.

Credit score Suisse did not remark when contacted by Reuters.

The lawsuit, filed in a New York district court docket, is on behalf of individuals and entities who acquired Credit score Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz said in a statement issued late on Friday.

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"The complaint alleges that, throughout the class period, defendants made materially false and deceptive statements relating to the corporate's enterprise, operations, and compliance policies," Pomerantz mentioned within the statement.

The regulation firm alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Monetary Instances story from February by which the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest clients' yachts and private jets, in an uncommon use of derivatives to dump the dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Occasions mentioned that after the publication of its article, Credit Suisse stated in a press release that the transaction “priced in keeping with different vital danger transactions, provided competitive investment and hedging terms for our skilled investor shoppers while increasing the capital flexibility of the bank.”

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

On March 3, Credit score Suisse stated no shopper information had been erased throughout the financial institution when it requested traders to destroy paperwork relating to a transaction last November, reacting to an additional Financial Occasions report associated to oligarchs.

Credit score 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 document seen by Reuters. learn more

Credit Suisse, which reported a first-quarter loss this week, has been dented by a series of expensive hits and a series of authorized circumstances that it has described as legacy matters. read more

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Reporting by Paul Carrel Enhancing by Frances Kerry

Our Standards: The Thomson Reuters Trust Rules.