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

The brand of Swiss bank Credit Suisse is seen at a branch office in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Picture

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

Credit score Suisse did not remark when contacted by Reuters.

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

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"The criticism alleges that, throughout the class interval, defendants made materially false and deceptive statements regarding the company's enterprise, operations, and compliance insurance policies," Pomerantz stated in the statement.

The regulation firm alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Financial Occasions story from February during which the newspaper reported that Credit 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 Monetary Occasions stated that after the publication of its article, Credit Suisse stated in a statement that the transaction “priced in line with other vital risk transactions, offered competitive investment and hedging terms for our professional investor purchasers whereas growing the capital flexibility of the financial institution.”

The lawsuit also referred to a request made by U.S. lawmakers in March for Credit Suisse at hand over documents related to the financing of yachts and personal jets owned by doubtlessly sanctioned people. read more

On March 3, Credit score Suisse said no shopper knowledge had been erased within the financial institution when it asked investors to destroy paperwork relating to a transaction final November, reacting to an additional Monetary Instances report associated to oligarchs.

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

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a sequence of costly hits and a collection of authorized cases that it has described as legacy issues. read more

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Reporting by Paul Carrel Modifying by Frances Kerry

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