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

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

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April 30 (Reuters) - A gaggle of people and entities have filed a class action lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss bank misled buyers over enterprise dealings related to Russian oligarchs, legislation agency Pomerantz LLP stated.

Credit Suisse did not remark when contacted by Reuters.

The lawsuit, filed in a New York district court docket, is on behalf of individuals and entities who acquired Credit score 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 deceptive statements concerning the corporate's business, operations, and compliance insurance policies," Pomerantz mentioned within the assertion.

The legislation agency alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Financial Times story from February through which the newspaper reported that Credit score 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 dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Instances stated that after the publication of its article, Credit Suisse said in an announcement that the transaction “priced consistent with other significant risk transactions, provided competitive funding and hedging phrases for our skilled investor clients while rising the capital flexibility of the bank.”

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

On March 3, Credit score Suisse stated no shopper knowledge had been erased within the financial institution when it requested investors to destroy paperwork relating to a transaction final November, reacting to a further Monetary Occasions report related to oligarchs.

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

Credit Suisse, which reported a first-quarter loss this week, has been dented by a sequence of costly hits and a collection of legal instances that it has described as legacy matters. learn more

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Reporting by Paul Carrel Enhancing by Frances Kerry

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