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

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

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April 30 (Reuters) - A gaggle of people and entities have filed a category motion lawsuit towards Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over business dealings associated to Russian oligarchs, law agency Pomerantz LLP stated.

Credit Suisse did not comment when contacted by Reuters.

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

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"The criticism alleges that, throughout the category interval, defendants made materially false and deceptive statements relating to the company's enterprise, operations, and compliance insurance policies," Pomerantz said in the statement.

The regulation agency alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial Occasions story from February during which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest clients' yachts and private jets, in an unusual use of derivatives to offload the dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Times stated that after the publication of its article, Credit Suisse said in an announcement that the transaction “priced according to different important danger transactions, offered competitive investment and hedging terms for our skilled investor clients while increasing the capital flexibility of the bank.”

The lawsuit also 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 potentially sanctioned people. learn more

On March 3, Credit score Suisse mentioned no shopper data had been erased inside the financial institution when it requested buyers to destroy paperwork regarding a transaction final November, reacting to an additional Monetary Instances report associated to oligarchs.

Credit Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank mentioned on March 28 in an inner doc seen by Reuters. read extra

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

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Reporting by Paul Carrel Enhancing by Frances Kerry

Our Requirements: The Thomson Reuters Trust Principles.