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

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

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April 30 (Reuters) - A gaggle of individuals and entities have filed a class motion lawsuit towards Credit score Suisse (CSGN.S), alleging that the Swiss bank misled buyers over enterprise dealings associated to Russian oligarchs, legislation firm Pomerantz LLP mentioned.

Credit Suisse didn't comment when contacted by Reuters.

The lawsuit, filed in a New York district courtroom, is on behalf of individuals 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 complaint alleges that, throughout the class period, defendants made materially false and misleading statements relating to the company's business, operations, and compliance policies," Pomerantz mentioned in the assertion.

The legislation firm alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial Instances 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 private jets, in an uncommon use of derivatives to offload the dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Instances stated that after the publication of its article, Credit Suisse mentioned in an announcement that the transaction “priced consistent with other significant danger transactions, provided aggressive investment and hedging phrases for our skilled 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 at hand over documents related to the financing of yachts and private jets owned by probably sanctioned individuals. learn extra

On March 3, Credit score Suisse said no shopper knowledge had been erased inside the bank when it asked traders to destroy paperwork regarding a transaction final November, reacting to an extra Monetary Instances report associated to oligarchs.

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

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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