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

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

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April 30 (Reuters) - A bunch of people and entities have filed a class motion lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss bank misled investors over enterprise dealings related 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 people and entities who acquired Credit score Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz stated in a press release issued late on Friday.

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"The complaint alleges that, throughout the category interval, defendants made materially false and misleading statements regarding the company's business, operations, and compliance policies," Pomerantz stated within the statement.

The regulation agency alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Monetary Instances story from February in which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest customers' yachts and personal jets, in an uncommon use of derivatives to dump the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Instances mentioned that after the publication of its article, Credit Suisse mentioned in a press release that the transaction “priced in step with different important danger transactions, provided aggressive 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 at hand over paperwork associated to the financing of yachts and private jets owned by potentially sanctioned people. learn extra

On March 3, Credit Suisse stated no shopper knowledge had been erased throughout the bank when it asked buyers to destroy paperwork regarding a transaction last November, reacting to an extra Financial Times report related to oligarchs.

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

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

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Reporting by Paul Carrel Enhancing by Frances Kerry

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