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

The logo of Swiss bank Credit Suisse is seen at a branch workplace in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Photograph

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April 30 (Reuters) - A gaggle of people and entities have filed a category motion lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss bank misled traders over enterprise dealings associated to Russian oligarchs, law agency Pomerantz LLP stated.

Credit score Suisse did not remark when contacted by Reuters.

The lawsuit, filed in a New York district court, is on behalf of people 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 complaint alleges that, all through the class interval, defendants made materially false and misleading statements concerning the corporate's enterprise, operations, and compliance insurance policies," Pomerantz stated within the statement.

The legislation agency alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial Occasions 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 private jets, in an unusual use of derivatives to offload the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Instances stated that after the publication of its article, Credit score Suisse mentioned in a press release that the transaction “priced according to different significant threat transactions, offered aggressive investment and hedging terms for our professional investor clients whereas increasing the capital flexibility of the financial institution.”

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

On March 3, Credit Suisse said no shopper data had been erased inside the bank when it asked investors to destroy documents regarding a transaction final November, reacting to an extra Monetary Times report associated to oligarchs.

Credit Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank stated on March 28 in an internal document seen by Reuters. learn more

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

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Reporting by Paul Carrel Editing by Frances Kerry

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