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

The logo of Swiss financial institution 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 individuals and entities have filed a class motion lawsuit towards Credit Suisse (CSGN.S), alleging that the Swiss bank misled investors over enterprise dealings related to Russian oligarchs, regulation firm Pomerantz LLP stated.

Credit Suisse did not remark when contacted by Reuters.

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

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"The complaint alleges that, all through the class interval, defendants made materially false and misleading statements relating to the corporate's enterprise, operations, and compliance insurance policies," Pomerantz said within the statement.

The law firm alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Monetary Times story from February during which 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 related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Instances mentioned that after the publication of its article, Credit Suisse mentioned in a statement that the transaction “priced in keeping with other vital threat transactions, supplied aggressive funding and hedging terms for our skilled investor purchasers while rising the capital flexibility of the financial institution.”

The lawsuit also referred to a request made by U.S. lawmakers in March for Credit score Suisse to hand over paperwork associated to the financing of yachts and private jets owned by potentially sanctioned people. read more

On March 3, Credit Suisse mentioned no client data had been erased throughout the financial institution when it asked buyers to destroy paperwork referring to a transaction last November, reacting to an additional Monetary Instances report related to oligarchs.

Credit Suisse stopped pursuing new business 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. 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. read extra

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Reporting by Paul Carrel Editing by Frances Kerry

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