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

The emblem of Swiss bank Credit 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 individuals and entities have filed a category motion lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss bank misled buyers over enterprise dealings related to Russian oligarchs, regulation agency Pomerantz LLP said.

Credit score Suisse did not 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 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 criticism alleges that, all through the category period, defendants made materially false and deceptive statements regarding the company's business, operations, and compliance policies," Pomerantz said in the statement.

The legislation agency alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Financial Times story from February in which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest clients' yachts and personal jets, in an unusual use of derivatives to offload the dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Occasions mentioned that after the publication of its article, Credit score Suisse said in a statement that the transaction “priced in step with other important risk transactions, supplied competitive funding and hedging phrases for our professional investor clients while growing the capital flexibility of the bank.”

The lawsuit also referred to a request made by U.S. lawmakers in March for Credit Suisse to hand over paperwork associated to the financing of yachts and private jets owned by doubtlessly sanctioned individuals. learn extra

On March 3, Credit score Suisse mentioned no shopper data had been erased within the bank when it requested traders to destroy documents relating to a transaction final November, reacting to an additional Monetary Instances report related to oligarchs.

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

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a series of pricey hits and a sequence of authorized instances that it has described as legacy issues. learn more

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Reporting by Paul Carrel Enhancing by Frances Kerry

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