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

The emblem of Swiss bank Credit 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 gaggle of individuals and entities have filed a class action lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over enterprise dealings associated to Russian oligarchs, legislation agency Pomerantz LLP stated.

Credit score Suisse did not 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 grievance alleges that, all through the category period, defendants made materially false and deceptive statements concerning the company's enterprise, operations, and compliance policies," Pomerantz mentioned within the statement.

The legislation agency alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Financial Times story from February by which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest prospects' yachts and private jets, in an unusual use of derivatives to offload the dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Times mentioned that after the publication of its article, Credit Suisse said in a statement that the transaction “priced in line with other significant threat transactions, provided competitive investment and hedging terms for our professional investor shoppers whereas rising the capital flexibility of the financial institution.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit score Suisse handy over documents related to the financing of yachts and private jets owned by potentially sanctioned people. read extra

On March 3, Credit Suisse mentioned no consumer data had been erased inside the financial institution when it requested traders to destroy paperwork relating to a transaction final November, reacting to a further Financial Times 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. read extra

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

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Reporting by Paul Carrel Editing by Frances Kerry

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