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

The brand of Swiss financial institution Credit score Suisse is seen at a department workplace in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Picture

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April 30 (Reuters) - A gaggle of people and entities have filed a category action lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over enterprise dealings related to Russian oligarchs, legislation firm Pomerantz LLP said.

Credit 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 score Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz mentioned 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 deceptive statements relating to the company's enterprise, operations, and compliance policies," Pomerantz said within the statement.

The law firm alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Financial Occasions story from February by 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 dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Occasions stated that after the publication of its article, Credit score Suisse stated in an announcement that the transaction “priced according to other vital risk transactions, provided aggressive investment and hedging terms for our professional investor purchasers whereas rising the capital flexibility of the bank.”

The lawsuit also referred to a request made by U.S. lawmakers in March for Credit score Suisse handy over documents associated to the financing of yachts and personal jets owned by probably sanctioned individuals. read extra

On March 3, Credit score Suisse stated no consumer information had been erased throughout the financial institution when it asked traders to destroy paperwork regarding a transaction last November, reacting to an additional Monetary Times report associated to oligarchs.

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

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 circumstances that it has described as legacy matters. read extra

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Reporting by Paul Carrel Enhancing by Frances Kerry

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