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

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

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April 30 (Reuters) - A bunch of individuals and entities have filed a category action lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss bank misled traders over business dealings related to Russian oligarchs, law firm Pomerantz LLP stated.

Credit score 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 said in a statement issued late on Friday.

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"The criticism alleges that, all through the class period, defendants made materially false and deceptive statements concerning the corporate's business, operations, and compliance insurance policies," Pomerantz stated within the statement.

The legislation firm alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Monetary Occasions story from February wherein 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 dump the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Times said that after the publication of its article, Credit score Suisse mentioned in a statement that the transaction “priced in keeping with other significant threat transactions, supplied aggressive funding and hedging phrases for our professional investor shoppers 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 at hand over documents associated to the financing of yachts and private jets owned by potentially sanctioned people. learn extra

On March 3, Credit score Suisse stated no consumer data had been erased inside the bank when it requested investors to destroy documents relating to a transaction final November, reacting to a further Financial Times report associated to oligarchs.

Credit Suisse stopped pursuing new enterprise in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank said on March 28 in an internal doc seen by Reuters. read more

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

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Reporting by Paul Carrel Editing by Frances Kerry

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