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

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

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April 30 (Reuters) - A group of individuals and entities have filed a category action lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over business dealings related to Russian oligarchs, regulation 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 people and entities who acquired Credit score Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz said 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 deceptive statements regarding the company's enterprise, operations, and compliance insurance policies," Pomerantz said within the statement.

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

The Monetary Instances mentioned that after the publication of its article, Credit Suisse said in a statement that the transaction “priced according to different important threat transactions, offered competitive investment and hedging phrases 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 score Suisse at hand over documents associated to the financing of yachts and personal jets owned by probably sanctioned individuals. learn extra

On March 3, Credit Suisse said no consumer information had been erased within the bank when it asked traders to destroy paperwork relating to a transaction last November, reacting to an extra Financial Occasions report associated to oligarchs.

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

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

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Reporting by Paul Carrel Enhancing by Frances Kerry

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