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

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

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April 30 (Reuters) - A bunch of people and entities have filed a category motion lawsuit towards Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over business dealings associated to Russian oligarchs, regulation agency Pomerantz LLP said.

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

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

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"The criticism alleges that, throughout the category interval, defendants made materially false and misleading statements concerning the corporate's enterprise, operations, and compliance policies," Pomerantz mentioned in the statement.

The law firm alleged disclosure shortcomings around a securitisation deal. It cited in its statement 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 uncommon use of derivatives to dump the dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Occasions mentioned that after the publication of its article, Credit score Suisse stated in an announcement that the transaction “priced consistent with other important danger transactions, provided aggressive funding and hedging phrases for our professional investor clients while growing the capital flexibility of the bank.”

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

On March 3, Credit Suisse stated no shopper information had been erased within the bank when it asked traders to destroy paperwork regarding a transaction last November, reacting to a further Financial Instances report associated to oligarchs.

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

Credit Suisse, which reported a first-quarter loss this week, has been dented by a series of pricey hits and a sequence of authorized instances that it has described as legacy issues. learn more

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Reporting by Paul Carrel Enhancing by Frances Kerry

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