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

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

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April 30 (Reuters) - A gaggle of people and entities have filed a category motion lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss bank misled investors over business dealings associated to Russian oligarchs, legislation firm Pomerantz LLP stated.

Credit score Suisse did not remark when contacted by Reuters.

The lawsuit, filed in a New York district courtroom, is on behalf of people and entities who acquired Credit score 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 category interval, defendants made materially false and misleading statements concerning the corporate's enterprise, operations, and compliance policies," Pomerantz stated in the statement.

The law firm alleged disclosure shortcomings around a securitisation deal. It cited in its assertion a Financial Instances story from February through which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest prospects' yachts and private jets, in an uncommon use of derivatives to dump the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Instances said that after the publication of its article, Credit Suisse stated in an announcement that the transaction “priced consistent with different vital threat transactions, offered aggressive investment and hedging phrases for our professional investor shoppers while increasing 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 to hand over paperwork related to the financing of yachts and personal jets owned by potentially sanctioned people. read more

On March 3, Credit Suisse stated no shopper information had been erased within the bank when it requested investors to destroy documents relating to a transaction final November, reacting to an extra Monetary Occasions report associated to oligarchs.

Credit Suisse stopped pursuing new enterprise in Russia after the invasion of Ukraine on Feb. 24, the Swiss financial institution mentioned on March 28 in an internal document seen by Reuters. learn extra

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a sequence of expensive hits and a series of legal cases that it has described as legacy issues. learn extra

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Reporting by Paul Carrel Enhancing by Frances Kerry

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