Credit Suisse sued in U.S. over alleged business 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 Photo

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April 30 (Reuters) - A bunch of people and entities have filed a class action lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss bank misled investors over business dealings associated to Russian oligarchs, regulation agency Pomerantz LLP mentioned.

Credit Suisse did not remark when contacted by Reuters.

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

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"The complaint alleges that, all through the category period, defendants made materially false and deceptive statements relating to the corporate's business, operations, and compliance insurance policies," Pomerantz said in the assertion.

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

The Monetary Times mentioned that after the publication of its article, Credit Suisse stated in an announcement that the transaction “priced in keeping with different significant risk transactions, supplied competitive funding and hedging terms for our professional investor shoppers while growing 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 individuals. learn extra

On March 3, Credit score Suisse stated no shopper information had been erased within the bank when it asked investors to destroy paperwork regarding a transaction final November, reacting to an extra Monetary Times report related to oligarchs.

Credit score Suisse stopped pursuing new enterprise 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 more

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

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Reporting by Paul Carrel Enhancing by Frances Kerry

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