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

The emblem of Swiss bank Credit score Suisse is seen at a branch workplace in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Photo

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April 30 (Reuters) - A group of individuals and entities have filed a class motion lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over business dealings related to Russian oligarchs, law agency Pomerantz LLP mentioned.

Credit Suisse did not 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 score Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz said in a statement issued late on Friday.

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"The criticism alleges that, throughout the category period, defendants made materially false and deceptive statements relating to the company's enterprise, operations, and compliance insurance policies," Pomerantz mentioned in the assertion.

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

The Financial Occasions stated that after the publication of its article, Credit score Suisse said in a statement that the transaction “priced in step with different significant risk transactions, supplied aggressive investment and hedging phrases for our skilled investor purchasers whereas growing the capital flexibility of the financial institution.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit Suisse handy over paperwork associated to the financing of yachts and personal jets owned by probably sanctioned people. learn extra

On March 3, Credit Suisse mentioned no client knowledge had been erased within the financial institution when it requested investors to destroy paperwork referring to a transaction final November, reacting to an extra Financial Times report associated to oligarchs.

Credit Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss financial institution stated on March 28 in an inner 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 cases 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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