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

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

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April 30 (Reuters) - A group of individuals and entities have filed a class action lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss bank misled traders over enterprise dealings related to Russian oligarchs, legislation firm Pomerantz LLP said.

Credit score Suisse did not remark when contacted by Reuters.

The lawsuit, filed in a New York district courtroom, 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.

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"The grievance alleges that, throughout the class interval, defendants made materially false and deceptive statements relating to the corporate's business, operations, and compliance insurance policies," Pomerantz said in the assertion.

The regulation agency alleged disclosure shortcomings around a securitisation deal. It cited in its assertion a Monetary Occasions story from February during which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest customers' yachts and private jets, in an unusual use of derivatives to offload the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Instances stated that after the publication of its article, Credit score Suisse mentioned in a press release that the transaction “priced according to different vital risk transactions, offered aggressive funding and hedging terms for our skilled investor purchasers while 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 to hand over documents associated to the financing of yachts and personal jets owned by potentially sanctioned individuals. learn extra

On March 3, Credit score Suisse mentioned no shopper data had been erased within the financial institution when it asked buyers to destroy documents regarding 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 extra

Credit Suisse, which reported a first-quarter loss this week, has been dented by a series of costly hits and a sequence of legal cases that it has described as legacy matters. read more

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Reporting by Paul Carrel Modifying by Frances Kerry

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