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

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

Register

April 30 (Reuters) - A gaggle of individuals and entities have filed a category motion lawsuit towards Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over business dealings related to Russian oligarchs, law firm Pomerantz LLP said.

Credit score Suisse didn't comment when contacted by Reuters.

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

Register

"The complaint alleges that, all through the category period, defendants made materially false and misleading statements regarding the company's business, operations, and compliance insurance policies," Pomerantz mentioned within the assertion.

The law firm alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Financial Times story from February in which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest prospects' yachts and personal jets, in an uncommon use of derivatives to offload the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Times said that after the publication of its article, Credit score Suisse said in a statement that the transaction “priced in step with other significant threat transactions, supplied competitive investment and hedging phrases for our skilled investor clients whereas growing the capital flexibility of the bank.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit score Suisse handy over documents associated to the financing of yachts and personal jets owned by probably sanctioned people. learn extra

On March 3, Credit Suisse mentioned no client knowledge had been erased within the financial institution when it asked traders to destroy documents regarding a transaction final November, reacting to a further Financial Occasions report related to oligarchs.

Credit score 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 doc seen by Reuters. read more

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

Register

Reporting by Paul Carrel Editing by Frances Kerry

Our Standards: The Thomson Reuters Belief Ideas.