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

The logo of Swiss financial institution Credit Suisse is seen at a department workplace 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 category action lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss bank misled investors over enterprise 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 courtroom, is on behalf of individuals 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 grievance alleges that, all through the class interval, defendants made materially false and misleading statements regarding the company's business, operations, and compliance insurance policies," Pomerantz mentioned within the statement.

The legislation agency alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Monetary Instances story from February by which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest customers' yachts and private jets, in an unusual use of derivatives to dump the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Occasions said that after the publication of its article, Credit Suisse mentioned in a press release that the transaction “priced in step with different vital risk transactions, offered aggressive funding and hedging phrases for our professional investor shoppers while increasing the capital flexibility of the financial institution.”

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

On March 3, Credit score Suisse said no client knowledge had been erased throughout the bank when it asked investors to destroy documents referring to a transaction last November, reacting to an extra Monetary Times report related to oligarchs.

Credit score Suisse stopped pursuing new enterprise in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank mentioned on March 28 in an internal doc seen by Reuters. learn more

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