Credit score Suisse sued in U.S. over alleged business associated 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 against Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over enterprise dealings related to Russian oligarchs, legislation firm Pomerantz LLP mentioned.

Credit Suisse didn't remark 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 grievance alleges that, all through the category interval, defendants made materially false and misleading statements regarding the company's business, operations, and compliance insurance policies," Pomerantz said within the statement.

The law firm alleged disclosure shortcomings around a securitisation deal. It cited in its assertion a Financial Instances story from February by which the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest clients' yachts and personal jets, in an uncommon use of derivatives to dump the dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Times stated that after the publication of its article, Credit Suisse stated in a statement that the transaction “priced consistent with other vital danger transactions, supplied aggressive investment and hedging terms for our professional 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 at hand over paperwork related to the financing of yachts and personal jets owned by potentially sanctioned individuals. learn more

On March 3, Credit Suisse mentioned no client data had been erased throughout the bank when it asked traders to destroy documents relating to a transaction final November, reacting to a further Monetary Instances report related to oligarchs.

Credit score 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 internal doc seen by Reuters. learn more

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

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Reporting by Paul Carrel Editing by Frances Kerry

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