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

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

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

Credit score Suisse did not comment when contacted by Reuters.

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

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"The criticism alleges that, all through the class interval, defendants made materially false and deceptive statements concerning the company's enterprise, operations, and compliance policies," Pomerantz stated within the assertion.

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

The Monetary Instances said that after the publication of its article, Credit Suisse mentioned in a press release that the transaction “priced consistent with other significant risk transactions, provided competitive investment and hedging phrases for our professional investor purchasers while increasing 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 paperwork related to the financing of yachts and personal jets owned by doubtlessly sanctioned people. learn extra

On March 3, Credit score Suisse stated no shopper data had been erased throughout the financial institution when it asked investors to destroy paperwork referring to a transaction last November, reacting to an extra Financial Occasions report associated to oligarchs.

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

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a sequence of costly hits and a sequence of authorized circumstances that it has described as legacy issues. read extra

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Reporting by Paul Carrel Modifying by Frances Kerry

Our Standards: The Thomson Reuters Belief Ideas.