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

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

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

Credit Suisse didn't remark when contacted by Reuters.

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

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"The criticism alleges that, all through the class interval, defendants made materially false and deceptive statements concerning the corporate's enterprise, operations, and compliance policies," Pomerantz mentioned within the statement.

The law agency alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial Instances story from February during 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 unusual use of derivatives to offload the dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Instances stated that after the publication of its article, Credit Suisse mentioned in a statement that the transaction “priced in step with different vital danger transactions, offered aggressive investment and hedging terms for our professional investor purchasers whereas rising the capital flexibility of the bank.”

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

On March 3, Credit Suisse stated no consumer information had been erased throughout the bank when it requested investors to destroy paperwork referring to a transaction final November, reacting to an additional Financial Instances report related to oligarchs.

Credit score Suisse stopped pursuing new enterprise in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank said on March 28 in an inside doc seen by Reuters. read extra

Credit Suisse, which reported a first-quarter loss this week, has been dented by a series of costly hits and a series of legal circumstances that it has described as legacy issues. read more

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Reporting by Paul Carrel Editing by Frances Kerry

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