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

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

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April 30 (Reuters) - A group of individuals and entities have filed a category motion lawsuit towards Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over enterprise dealings related to Russian oligarchs, regulation agency Pomerantz LLP mentioned.

Credit Suisse didn't remark when contacted by Reuters.

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

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"The criticism alleges that, throughout the class interval, defendants made materially false and misleading statements regarding the corporate's enterprise, operations, and compliance insurance policies," Pomerantz said in the statement.

The regulation agency alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial Occasions story from February through 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 Financial Times said that after the publication of its article, Credit Suisse said in a press release that the transaction “priced consistent with other vital risk transactions, provided competitive investment and hedging terms for our professional investor purchasers whereas increasing 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 related to the financing of yachts and private jets owned by potentially sanctioned people. read extra

On March 3, Credit Suisse stated no client information had been erased within the bank when it requested investors to destroy paperwork referring to a transaction final November, reacting to an extra Monetary Instances 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 mentioned on March 28 in an inner document seen by Reuters. learn extra

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

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Reporting by Paul Carrel Enhancing by Frances Kerry

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