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

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

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April 30 (Reuters) - A bunch of people and entities have filed a category motion lawsuit towards Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over business dealings related to Russian oligarchs, legislation firm 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 said in a statement issued late on Friday.

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"The complaint alleges that, throughout the class interval, defendants made materially false and deceptive statements relating to the company's enterprise, operations, and compliance insurance policies," Pomerantz mentioned within the assertion.

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

The Monetary Occasions said that after the publication of its article, Credit Suisse stated in a press release that the transaction “priced in line with different significant threat transactions, offered competitive funding and hedging terms for our professional investor shoppers whereas rising the capital flexibility of the bank.”

The lawsuit also 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 probably sanctioned individuals. read extra

On March 3, Credit score Suisse stated no client data had been erased throughout the bank when it requested buyers to destroy paperwork relating to a transaction final November, reacting to an additional Financial Occasions report associated to oligarchs.

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

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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