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

The emblem of Swiss financial institution Credit 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 group of people and entities have filed a class motion lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss bank misled traders over enterprise dealings related to Russian oligarchs, law firm Pomerantz LLP stated.

Credit score Suisse did not remark when contacted by Reuters.

The lawsuit, filed in a New York district court, is on behalf of individuals and entities who acquired Credit Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz said 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 concerning the corporate's enterprise, operations, and compliance policies," Pomerantz stated within the statement.

The legislation agency alleged disclosure shortcomings around a securitisation deal. It cited in its assertion a Monetary Occasions story from February wherein the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest clients' yachts and personal jets, in an unusual use of derivatives to dump the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Instances mentioned that after the publication of its article, Credit Suisse stated in an announcement that the transaction “priced in step with different important risk transactions, provided aggressive investment and hedging phrases for our skilled 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 to hand over documents related to the financing of yachts and personal jets owned by doubtlessly sanctioned individuals. read extra

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

Credit 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 inside doc seen by Reuters. read extra

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

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Reporting by Paul Carrel Enhancing by Frances Kerry

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