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

The logo of Swiss financial institution Credit Suisse is seen at a branch office 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 enterprise dealings related to Russian oligarchs, legislation agency Pomerantz LLP mentioned.

Credit score Suisse didn't 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, throughout the category period, defendants made materially false and misleading statements relating to the corporate's enterprise, operations, and compliance policies," Pomerantz stated in the assertion.

The regulation firm alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Financial Instances story from February wherein the newspaper reported that Credit 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 risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Times stated that after the publication of its article, Credit Suisse stated in a press release that the transaction “priced consistent with different vital danger transactions, provided competitive investment and hedging terms for our professional investor purchasers whereas rising the capital flexibility of the financial institution.”

The lawsuit additionally 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 personal jets owned by doubtlessly sanctioned individuals. read more

On March 3, Credit Suisse stated no consumer knowledge had been erased within the financial institution when it asked traders to destroy paperwork relating to a transaction final November, reacting to an extra Financial Occasions report associated to oligarchs.

Credit Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss financial institution mentioned on March 28 in an internal doc seen by Reuters. read extra

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

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Reporting by Paul Carrel Enhancing by Frances Kerry

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