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

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

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April 30 (Reuters) - A bunch of individuals and entities have filed a class motion lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over business dealings associated to Russian oligarchs, law firm Pomerantz LLP mentioned.

Credit Suisse did not comment when contacted by Reuters.

The lawsuit, filed in a New York district courtroom, is on behalf of people and entities who acquired Credit score 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 deceptive statements relating to the corporate's business, operations, and compliance insurance policies," Pomerantz mentioned within the assertion.

The regulation firm alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Monetary Occasions story from February in which the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest customers' yachts and personal jets, in an unusual use of derivatives to offload the dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Times mentioned that after the publication of its article, Credit score Suisse mentioned in an announcement that the transaction “priced in line with other significant threat transactions, supplied competitive investment and hedging terms for our skilled investor shoppers whereas growing the capital flexibility of the financial institution.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit Suisse to hand over paperwork associated to the financing of yachts and private jets owned by doubtlessly sanctioned individuals. learn more

On March 3, Credit score Suisse stated no shopper knowledge had been erased throughout the financial institution when it asked investors to destroy documents regarding a transaction final November, reacting to an additional Financial Instances report related to oligarchs.

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

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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