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

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

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April 30 (Reuters) - A gaggle of people and entities have filed a class action lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over business dealings associated to Russian oligarchs, legislation agency Pomerantz LLP said.

Credit Suisse did not comment when contacted by Reuters.

The lawsuit, filed in a New York district court docket, is on behalf of people 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 grievance alleges that, all through the class interval, defendants made materially false and deceptive statements relating to the company's business, operations, and compliance policies," Pomerantz said within the statement.

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

The Financial Times mentioned that after the publication of its article, Credit score Suisse said in a press release that the transaction “priced in keeping with different significant threat transactions, offered competitive investment and hedging terms for our skilled investor shoppers whereas rising the capital flexibility of the bank.”

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

On March 3, Credit score Suisse mentioned no consumer knowledge had been erased throughout the bank when it requested investors to destroy paperwork referring to a transaction final November, reacting to an additional Financial Instances 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 inner doc seen by Reuters. learn more

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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