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

The emblem 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 individuals and entities have filed a class motion lawsuit towards Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over business dealings associated to Russian oligarchs, regulation agency Pomerantz LLP said.

Credit score Suisse did not remark when contacted by Reuters.

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

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

The regulation agency 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 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 risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Occasions mentioned that after the publication of its article, Credit Suisse mentioned in a statement that the transaction “priced in line with different significant danger transactions, supplied aggressive investment and hedging phrases for our professional investor purchasers whereas growing the capital flexibility of the bank.”

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

On March 3, Credit score Suisse mentioned no client information had been erased inside the bank when it requested investors to destroy documents regarding a transaction final November, reacting to an extra Financial Occasions report associated to oligarchs.

Credit score Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss financial institution stated 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 series of expensive hits and a sequence of legal cases that it has described as legacy matters. read extra

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Reporting by Paul Carrel Enhancing by Frances Kerry

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