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

The logo of Swiss bank 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 group of people and entities have filed a category motion lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over business dealings associated to Russian oligarchs, law agency Pomerantz LLP mentioned.

Credit Suisse didn't comment when contacted by Reuters.

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

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"The grievance alleges that, throughout the class period, defendants made materially false and misleading statements regarding the corporate's enterprise, operations, and compliance policies," Pomerantz said in the statement.

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

The Monetary Occasions said that after the publication of its article, Credit Suisse mentioned in an announcement that the transaction “priced according to different significant threat transactions, supplied competitive funding and hedging terms for our professional investor purchasers 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 handy over documents associated to the financing of yachts and personal jets owned by probably sanctioned people. learn extra

On March 3, Credit score Suisse stated no client knowledge had been erased within the bank when it requested investors to destroy documents referring to a transaction final November, reacting to an additional 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 said on March 28 in an inside document seen by Reuters. read extra

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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