Credit score Suisse sued in U.S. over alleged enterprise 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 gaggle of individuals and entities have filed a class motion lawsuit towards Credit score Suisse (CSGN.S), alleging that the Swiss bank misled investors over enterprise dealings associated to Russian oligarchs, law firm Pomerantz LLP stated.

Credit score 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 mentioned in a press release issued late on Friday.

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

The law firm alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Monetary 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 offload the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Occasions said that after the publication of its article, Credit Suisse said in a press release that the transaction “priced according to other significant danger transactions, provided competitive investment and hedging phrases for our skilled investor shoppers while growing 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 paperwork related to the financing of yachts and private jets owned by doubtlessly sanctioned individuals. learn extra

On March 3, Credit score Suisse mentioned no consumer knowledge had been erased throughout the bank when it asked traders to destroy paperwork referring to a transaction final November, reacting to a further Financial Occasions report related to oligarchs.

Credit score Suisse stopped pursuing new enterprise in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank stated 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 pricey hits and a collection of legal cases that it has described as legacy issues. learn more

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Reporting by Paul Carrel Editing by Frances Kerry

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