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

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

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April 30 (Reuters) - A bunch of individuals and entities have filed a category motion lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss bank misled buyers over enterprise dealings related to Russian oligarchs, law agency Pomerantz LLP mentioned.

Credit Suisse did not remark 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 stated in an announcement issued late on Friday.

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"The complaint alleges that, all through the class interval, defendants made materially false and deceptive statements regarding the company's business, operations, and compliance insurance policies," Pomerantz said in the assertion.

The regulation firm alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Financial Occasions story from February wherein the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest clients' yachts and private jets, in an uncommon use of derivatives to dump the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Times stated that after the publication of its article, Credit score Suisse stated in a statement that the transaction “priced in step with other vital threat transactions, provided aggressive funding and hedging phrases for our skilled investor shoppers whereas rising the capital flexibility of the financial institution.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit Suisse handy over documents associated to the financing of yachts and personal jets owned by doubtlessly sanctioned people. learn extra

On March 3, Credit score Suisse stated no shopper information had been erased inside the financial institution when it asked buyers to destroy documents relating to a transaction final November, reacting to an additional Monetary Occasions report related to oligarchs.

Credit 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 doc seen by Reuters. read more

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

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Reporting by Paul Carrel Enhancing by Frances Kerry

Our Standards: The Thomson Reuters Trust Ideas.