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

The emblem of Swiss financial institution Credit score Suisse is seen at a branch workplace 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 motion lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss bank misled buyers over business dealings related to Russian oligarchs, regulation agency Pomerantz LLP stated.

Credit score Suisse didn't comment when contacted by Reuters.

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

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"The grievance alleges that, all through the class period, defendants made materially false and misleading statements concerning the corporate's business, operations, and compliance policies," Pomerantz mentioned within the assertion.

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

The Monetary Times said that after the publication of its article, Credit score Suisse mentioned in a press release that the transaction “priced according to different vital threat transactions, offered aggressive funding and hedging phrases for our professional investor purchasers while rising the capital flexibility of the financial institution.”

The lawsuit also referred to a request made by U.S. lawmakers in March for Credit Suisse at hand over paperwork related to the financing of yachts and personal jets owned by potentially sanctioned people. read extra

On March 3, Credit score Suisse said no consumer data had been erased throughout the financial institution when it asked investors to destroy documents relating to a transaction final November, reacting to an additional Monetary Occasions report associated to oligarchs.

Credit score Suisse stopped pursuing new enterprise 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 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 issues. learn extra

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Reporting by Paul Carrel Modifying by Frances Kerry

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