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

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

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April 30 (Reuters) - A bunch of people and entities have filed a category action lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over enterprise dealings related to Russian oligarchs, regulation agency Pomerantz LLP stated.

Credit score Suisse didn't comment when contacted by Reuters.

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

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"The complaint alleges that, throughout the category period, defendants made materially false and misleading statements relating to the company's enterprise, operations, and compliance policies," Pomerantz stated within the assertion.

The regulation agency alleged disclosure shortcomings around a securitisation deal. It cited in its statement 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 prospects' yachts and personal jets, in an unusual use of derivatives to offload the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Times stated that after the publication of its article, Credit Suisse stated in a press release that the transaction “priced consistent with other vital danger transactions, provided competitive funding and hedging terms for our professional investor shoppers 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 to hand over paperwork related to the financing of yachts and private jets owned by potentially sanctioned individuals. read extra

On March 3, Credit score Suisse stated no client information had been erased throughout the financial institution when it requested buyers to destroy documents relating to a transaction final November, reacting to an extra Monetary Occasions report related to oligarchs.

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

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

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Reporting by Paul Carrel Editing by Frances Kerry

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