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

The logo of Swiss financial institution Credit score Suisse is seen at a branch 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 action lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over enterprise dealings related to Russian oligarchs, legislation agency Pomerantz LLP said.

Credit score 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 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, throughout the category interval, defendants made materially false and misleading statements relating to the corporate's business, operations, and compliance policies," Pomerantz mentioned within the assertion.

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

The Monetary Instances stated that after the publication of its article, Credit score Suisse mentioned in an announcement that the transaction “priced in keeping with other important risk transactions, offered aggressive funding and hedging terms for our professional investor purchasers while increasing the capital flexibility of the bank.”

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

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

Credit Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank mentioned on March 28 in an inner doc 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 series of legal cases 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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