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

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

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April 30 (Reuters) - A bunch of people and entities have filed a category action lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss bank misled traders over enterprise dealings associated to Russian oligarchs, legislation firm Pomerantz LLP stated.

Credit score Suisse didn't comment when contacted by Reuters.

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

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"The grievance alleges that, throughout the category period, defendants made materially false and misleading statements regarding the company's enterprise, operations, and compliance insurance policies," Pomerantz said within the statement.

The law agency alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Monetary Times story from February through 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 offload the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Instances mentioned that after the publication of its article, Credit Suisse stated in a statement that the transaction “priced according to different vital threat transactions, offered competitive funding and hedging terms for our professional investor clients while growing 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 at hand over paperwork related to the financing of yachts and personal jets owned by potentially sanctioned individuals. read extra

On March 3, Credit Suisse stated no shopper knowledge had been erased inside the financial institution when it requested traders to destroy documents regarding a transaction final November, reacting to an extra Financial Times report related to oligarchs.

Credit 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 Suisse, which reported a first-quarter loss this week, has been dented by a series of expensive hits and a sequence of authorized circumstances 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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