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

The emblem of Swiss financial institution Credit Suisse is seen at a department office in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Photo

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April 30 (Reuters) - A gaggle of people and entities have filed a class motion lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over business dealings associated to Russian oligarchs, law firm Pomerantz LLP said.

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

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

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"The criticism alleges that, throughout the class interval, defendants made materially false and misleading statements relating to the corporate's enterprise, operations, and compliance insurance policies," Pomerantz mentioned in the assertion.

The law agency alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Monetary Instances story from February during which the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest clients' yachts and private jets, in an uncommon use of derivatives to offload the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Instances stated that after the publication of its article, Credit score Suisse said in a press release that the transaction “priced in keeping with other significant risk transactions, provided aggressive investment and hedging terms for our skilled investor clients whereas growing the capital flexibility of the bank.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit Suisse at hand over documents associated to the financing of yachts and private jets owned by probably sanctioned individuals. learn extra

On March 3, Credit Suisse said no client data had been erased inside the bank when it asked investors to destroy documents regarding a transaction final November, reacting to a further Monetary Occasions report related to oligarchs.

Credit Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss financial institution said on March 28 in an internal document seen by Reuters. read extra

Credit Suisse, which reported a first-quarter loss this week, has been dented by a series of pricey hits and a series of legal circumstances that it has described as legacy matters. learn extra

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Reporting by Paul Carrel Modifying by Frances Kerry

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