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

The logo of Swiss financial institution Credit score Suisse is seen at a branch workplace 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 class action lawsuit towards Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over enterprise dealings associated to Russian oligarchs, regulation agency Pomerantz LLP mentioned.

Credit score Suisse didn't comment 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 stated in a press release issued late on Friday.

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"The criticism alleges that, all through the class period, defendants made materially false and deceptive statements regarding the corporate's enterprise, operations, and compliance policies," Pomerantz stated within the statement.

The regulation firm alleged disclosure shortcomings around a securitisation deal. It cited in its assertion a Monetary Instances story from February wherein the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest clients' yachts and private jets, in an unusual use of derivatives to offload the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Times stated that after the publication of its article, Credit score Suisse mentioned in an announcement that the transaction “priced in line with different vital threat transactions, offered competitive investment and hedging phrases for our professional investor shoppers whereas rising 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 documents associated to the financing of yachts and personal jets owned by doubtlessly sanctioned individuals. learn more

On March 3, Credit score Suisse said no client knowledge had been erased throughout the financial institution when it requested investors to destroy paperwork relating to a transaction final November, reacting to an extra Financial Occasions report related to oligarchs.

Credit Suisse stopped pursuing new business 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 score Suisse, which reported a first-quarter loss this week, has been dented by a collection of expensive hits and a sequence of authorized cases that it has described as legacy issues. read more

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Reporting by Paul Carrel Modifying by Frances Kerry

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