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

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

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April 30 (Reuters) - A bunch of individuals and entities have filed a category action lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss bank misled investors over business dealings associated to Russian oligarchs, regulation firm Pomerantz LLP mentioned.

Credit score Suisse did not comment when contacted by Reuters.

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

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"The grievance alleges that, throughout the category interval, defendants made materially false and misleading statements regarding the corporate's enterprise, operations, and compliance policies," Pomerantz said within the assertion.

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

The Financial Instances mentioned that after the publication of its article, Credit score Suisse stated in a statement that the transaction “priced consistent with other vital risk transactions, provided competitive funding and hedging phrases for our professional investor clients whereas growing the capital flexibility of the financial institution.”

The lawsuit also 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 people. learn more

On March 3, Credit Suisse stated no client information had been erased throughout the financial institution when it requested investors to destroy documents relating to a transaction final November, reacting to an additional Monetary Occasions 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 said on March 28 in an internal document seen by Reuters. learn extra

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a sequence of expensive hits and a sequence of legal cases that it has described as legacy matters. learn extra

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Reporting by Paul Carrel Modifying by Frances Kerry

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