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

The logo of Swiss bank 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 group of people and entities have filed a class motion lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss bank misled traders over enterprise dealings related to Russian oligarchs, legislation firm Pomerantz LLP mentioned.

Credit Suisse did not comment when contacted by Reuters.

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

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"The complaint alleges that, all through the class interval, defendants made materially false and misleading statements regarding the company's business, operations, and compliance policies," Pomerantz said within the statement.

The legislation agency alleged disclosure shortcomings around a securitisation deal. It cited in its assertion a Financial Times story from February wherein the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest prospects' yachts and private jets, in an uncommon use of derivatives to offload the dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Times mentioned that after the publication of its article, Credit Suisse mentioned in an announcement that the transaction “priced according to different significant danger transactions, supplied aggressive funding and hedging phrases for our skilled investor purchasers whereas 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 handy over paperwork related to the financing of yachts and private jets owned by probably sanctioned people. read more

On March 3, Credit score Suisse said no client information had been erased throughout the bank when it asked traders to destroy documents referring to a transaction final November, reacting to a further Financial Instances report related to oligarchs.

Credit Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank mentioned on March 28 in an inside document seen by Reuters. read more

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a collection of costly hits and a sequence of authorized instances that it has described as legacy issues. read extra

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Reporting by Paul Carrel Modifying by Frances Kerry

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