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

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

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

Credit score Suisse didn't remark when contacted by Reuters.

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

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"The grievance alleges that, all through the class period, defendants made materially false and misleading statements relating to the corporate's business, operations, and compliance policies," Pomerantz stated in the assertion.

The legislation firm alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Monetary Instances story from February during 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 related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Times mentioned that after the publication of its article, Credit score Suisse said in a statement that the transaction “priced consistent with different significant threat transactions, offered aggressive funding and hedging phrases for our skilled investor purchasers whereas increasing the capital flexibility of the financial institution.”

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

On March 3, Credit Suisse stated no client data had been erased within the financial institution when it asked buyers to destroy documents referring to a transaction final November, reacting to an additional 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 stated on March 28 in an internal document seen by Reuters. read more

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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