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

The logo of Swiss financial institution Credit Suisse is seen at a department office in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Photograph

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April 30 (Reuters) - A group of people and entities have filed a class motion lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over business dealings related to Russian oligarchs, law agency Pomerantz LLP mentioned.

Credit 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 score Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz stated in an announcement issued late on Friday.

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"The criticism alleges that, all through the category interval, defendants made materially false and deceptive statements concerning the corporate's enterprise, operations, and compliance insurance policies," Pomerantz said within the assertion.

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

The Financial Times said that after the publication of its article, Credit score Suisse said in an announcement that the transaction “priced according to different important threat transactions, supplied aggressive investment and hedging terms for our skilled investor purchasers whereas rising 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 documents related to the financing of yachts and personal jets owned by doubtlessly sanctioned people. read more

On March 3, Credit Suisse said no shopper data had been erased inside the financial institution when it requested traders to destroy paperwork relating to a transaction last November, reacting to an extra Monetary Instances report associated to oligarchs.

Credit score Suisse stopped pursuing new enterprise in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank stated on March 28 in an inside document seen by Reuters. learn extra

Credit Suisse, which reported a first-quarter loss this week, has been dented by a sequence of pricey hits and a series of legal cases that it has described as legacy matters. learn extra

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Reporting by Paul Carrel Modifying by Frances Kerry

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