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

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

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April 30 (Reuters) - A group of people and entities have filed a class motion lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss bank misled traders over business dealings related to Russian oligarchs, legislation firm Pomerantz LLP mentioned.

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 Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz mentioned in an announcement issued late on Friday.

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"The grievance alleges that, all through the category interval, defendants made materially false and deceptive statements relating to the company's business, operations, and compliance policies," Pomerantz mentioned in the statement.

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

The Financial Times mentioned that after the publication of its article, Credit score Suisse stated in a press release that the transaction “priced in keeping with different important threat transactions, offered competitive funding and hedging phrases for our professional investor purchasers while rising the capital flexibility of the bank.”

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

On March 3, Credit Suisse said no consumer knowledge had been erased inside the financial institution when it requested buyers to destroy paperwork relating to a transaction last November, reacting to a further Financial Occasions report related to oligarchs.

Credit score 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 document seen by Reuters. learn extra

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