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

The brand of Swiss bank Credit score Suisse is seen at a branch office in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Photograph

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April 30 (Reuters) - A group of individuals and entities have filed a class action lawsuit towards Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over business dealings related to Russian oligarchs, legislation agency Pomerantz LLP mentioned.

Credit score Suisse didn't comment 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 mentioned in a press release issued late on Friday.

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"The criticism alleges that, throughout the category period, defendants made materially false and misleading statements relating to the company's enterprise, operations, and compliance insurance policies," Pomerantz stated in the assertion.

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

The Financial Occasions mentioned that after the publication of its article, Credit Suisse mentioned in a press release that the transaction “priced according to other significant risk transactions, offered aggressive investment and hedging terms for our professional investor shoppers whereas growing 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 doubtlessly sanctioned individuals. read more

On March 3, Credit score Suisse mentioned no consumer knowledge had been erased throughout the bank when it requested investors to destroy documents relating to a transaction final November, reacting to an extra Monetary Occasions report related to oligarchs.

Credit score 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 inner document seen by Reuters. read more

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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