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

The brand of Swiss bank Credit score Suisse is seen at a department workplace 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 category action lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss bank misled traders over business dealings associated to Russian oligarchs, law agency Pomerantz LLP stated.

Credit Suisse didn't comment when contacted by Reuters.

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

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"The criticism alleges that, throughout the class period, defendants made materially false and deceptive statements regarding the corporate's business, operations, and compliance insurance policies," Pomerantz stated in the statement.

The legislation agency alleged disclosure shortcomings around a securitisation deal. It cited in its assertion a Financial Times story from February in which the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest clients' yachts and personal jets, in an uncommon use of derivatives to offload the risks associated with 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 line with different important threat transactions, offered competitive investment and hedging phrases for our professional investor shoppers while rising the capital flexibility of the financial institution.”

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

On March 3, Credit score Suisse mentioned no consumer knowledge had been erased inside the bank when it requested investors to destroy documents relating to a transaction last November, reacting to an additional Financial Instances report related to oligarchs.

Credit Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss financial institution mentioned on March 28 in an inner doc seen by Reuters. learn extra

Credit Suisse, which reported a first-quarter loss this week, has been dented by a collection of expensive hits and a series of legal instances that it has described as legacy issues. learn extra

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Reporting by Paul Carrel Editing by Frances Kerry

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