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

The logo of Swiss financial institution Credit 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 gaggle of people and entities have filed a category motion lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over business dealings related to Russian oligarchs, regulation agency Pomerantz LLP said.

Credit Suisse didn't remark when contacted by Reuters.

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

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"The complaint alleges that, all through the category interval, defendants made materially false and deceptive statements relating to the corporate's enterprise, operations, and compliance insurance policies," Pomerantz stated within the statement.

The law firm alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial 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 dump the dangers 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 a statement that the transaction “priced according to different significant threat transactions, offered aggressive investment and hedging phrases for our skilled investor purchasers whereas increasing the capital flexibility of the bank.”

The lawsuit also referred to a request made by U.S. lawmakers in March for Credit Suisse at hand over documents related to the financing of yachts and personal jets owned by doubtlessly sanctioned people. read extra

On March 3, Credit Suisse stated no client data had been erased within the financial institution when it requested traders to destroy documents referring to a transaction final November, reacting to an additional Monetary Times report related to oligarchs.

Credit score 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. read extra

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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