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

The brand of Swiss financial institution Credit Suisse is seen at a department workplace in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Photograph

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April 30 (Reuters) - A bunch of people and entities have filed a category action lawsuit towards Credit score Suisse (CSGN.S), alleging that the Swiss bank misled investors over enterprise dealings related to Russian oligarchs, legislation firm Pomerantz LLP stated.

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 score Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz stated in a press release issued late on Friday.

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"The grievance alleges that, all through the category interval, defendants made materially false and deceptive statements concerning the corporate's business, operations, and compliance policies," Pomerantz mentioned within the assertion.

The law agency alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial Occasions story from February in which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest clients' 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 Occasions mentioned that after the publication of its article, Credit Suisse said in an announcement that the transaction “priced consistent with different important threat transactions, offered aggressive funding and hedging phrases for our professional investor clients whereas growing the capital flexibility of the financial institution.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit Suisse handy over paperwork associated to the financing of yachts and personal jets owned by doubtlessly sanctioned individuals. read more

On March 3, Credit Suisse said no client knowledge had been erased within the financial institution when it asked buyers to destroy paperwork relating to a transaction last November, reacting to a further Monetary Occasions report associated to oligarchs.

Credit 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 costly hits and a series of legal instances that it has described as legacy issues. learn extra

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Reporting by Paul Carrel Editing by Frances Kerry

Our Standards: The Thomson Reuters Trust Principles.