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

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

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April 30 (Reuters) - A gaggle of people and entities have filed a class motion lawsuit towards Credit score Suisse (CSGN.S), alleging that the Swiss bank misled investors 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 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 criticism alleges that, throughout the class period, defendants made materially false and misleading statements regarding the corporate's business, operations, and compliance policies," Pomerantz stated in the assertion.

The regulation firm alleged disclosure shortcomings around a securitisation deal. It cited in its assertion a Financial Occasions 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 risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Occasions said that after the publication of its article, Credit score Suisse mentioned in a statement that the transaction “priced consistent with different significant risk transactions, offered aggressive funding and hedging phrases for our professional investor clients while growing 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 associated to the financing of yachts and private jets owned by doubtlessly sanctioned people. read more

On March 3, Credit score Suisse said no shopper knowledge had been erased throughout the bank when it requested traders to destroy paperwork relating to a transaction final November, reacting to an additional Financial Occasions report associated to oligarchs.

Credit Suisse stopped pursuing new business 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 sequence of costly hits and a collection of legal cases that it has described as legacy matters. read extra

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Reporting by Paul Carrel Enhancing by Frances Kerry

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