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

The logo 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 gaggle of people and entities have filed a class action lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over enterprise dealings related to Russian oligarchs, regulation firm Pomerantz LLP stated.

Credit Suisse didn't comment when contacted by Reuters.

The lawsuit, filed in a New York district courtroom, is on behalf of individuals and entities who acquired Credit 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, all through the category interval, defendants made materially false and deceptive statements relating to the corporate's business, operations, and compliance policies," Pomerantz stated in the assertion.

The regulation agency alleged disclosure shortcomings around a securitisation deal. It cited in its assertion a Monetary Occasions story from February wherein the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest customers' yachts and private jets, in an unusual use of derivatives to dump the dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Occasions said that after the publication of its article, Credit Suisse said in a statement that the transaction “priced according to different significant risk transactions, provided aggressive investment and hedging phrases for our skilled investor clients while 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 to hand over documents related to the financing of yachts and personal jets owned by potentially sanctioned people. learn more

On March 3, Credit score Suisse stated no client information had been erased inside the bank when it asked traders to destroy paperwork relating to a transaction last November, reacting to an extra Monetary Occasions report associated to oligarchs.

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

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

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Reporting by Paul Carrel Editing by Frances Kerry

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