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

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

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April 30 (Reuters) - A group of individuals and entities have filed a class action lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over enterprise dealings related to Russian oligarchs, legislation firm Pomerantz LLP mentioned.

Credit score Suisse did not remark when contacted by Reuters.

The lawsuit, filed in a New York district court docket, is on behalf of individuals and entities who acquired Credit score Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz mentioned in an announcement issued late on Friday.

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"The complaint alleges that, all through the class interval, defendants made materially false and misleading statements concerning the company's enterprise, operations, and compliance policies," Pomerantz mentioned within the statement.

The regulation firm alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Financial Occasions story from February during which 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 related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Times mentioned that after the publication of its article, Credit Suisse mentioned in a statement that the transaction “priced according to other important danger transactions, offered competitive funding and hedging terms for our skilled investor clients whereas rising the capital flexibility of the bank.”

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

On March 3, Credit Suisse stated no consumer data had been erased within the financial institution when it requested investors to destroy documents relating to a transaction last November, reacting to an additional Monetary Times report associated to oligarchs.

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

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