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

The logo of Swiss financial institution Credit score Suisse is seen at a branch workplace in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Photo

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April 30 (Reuters) - A bunch of individuals and entities have filed a class motion lawsuit towards Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over business dealings associated to Russian oligarchs, law firm Pomerantz LLP said.

Credit score Suisse did not 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 mentioned in a press release issued late on Friday.

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"The complaint alleges that, all through the class interval, defendants made materially false and deceptive statements regarding the corporate's enterprise, operations, and compliance insurance policies," Pomerantz mentioned in the assertion.

The legislation agency alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Monetary Occasions story from February through which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest clients' yachts and personal jets, in an uncommon use of derivatives to dump 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 in keeping with other vital threat transactions, supplied aggressive funding and hedging phrases for our professional investor clients whereas rising the capital flexibility of the financial institution.”

The lawsuit also referred to a request made by U.S. lawmakers in March for Credit score Suisse handy over paperwork related to the financing of yachts and private jets owned by doubtlessly sanctioned individuals. read more

On March 3, Credit Suisse said no client information had been erased throughout the bank when it asked traders to destroy paperwork regarding a transaction final November, reacting to an additional Monetary Times report associated to oligarchs.

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

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a sequence of costly hits and a collection of authorized 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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