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 class motion 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 remark when contacted by Reuters.

The lawsuit, filed in a New York district courtroom, is on behalf of people and entities who acquired Credit Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz stated in an announcement issued late on Friday.

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"The criticism alleges that, all through the category interval, defendants made materially false and misleading statements relating to the corporate's enterprise, operations, and compliance insurance policies," Pomerantz stated within the statement.

The regulation agency alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial Times story from February wherein the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest customers' yachts and personal jets, in an uncommon use of derivatives to dump the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Times stated that after the publication of its article, Credit Suisse mentioned in a statement that the transaction “priced in line with different significant danger transactions, provided aggressive investment and hedging phrases for our professional investor clients whereas growing the capital flexibility of the bank.”

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

On March 3, Credit Suisse mentioned no shopper information had been erased within the financial institution when it asked investors to destroy paperwork relating to a transaction final November, reacting to a further Monetary Times report related to oligarchs.

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

Credit Suisse, which reported a first-quarter loss this week, has been dented by a series of pricey hits and a sequence of legal instances 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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