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

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

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April 30 (Reuters) - A gaggle of people and entities have filed a category motion lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss bank misled investors over enterprise dealings associated to Russian oligarchs, law firm Pomerantz LLP stated.

Credit Suisse didn't 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 mentioned in an announcement issued late on Friday.

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

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

The Financial Instances stated that after the publication of its article, Credit Suisse said in a statement that the transaction “priced in step with different significant threat transactions, supplied aggressive funding and hedging phrases for our professional investor purchasers 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 score Suisse handy over paperwork related to the financing of yachts and private jets owned by doubtlessly sanctioned people. read extra

On March 3, Credit Suisse stated no client information had been erased throughout the bank when it requested investors to destroy documents relating to a transaction last November, reacting to a further Monetary Times 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 stated on March 28 in an inner doc seen by Reuters. read more

Credit Suisse, which reported a first-quarter loss this week, has been dented by a collection of pricey hits and a series of legal cases that it has described as legacy issues. read extra

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Reporting by Paul Carrel Editing by Frances Kerry

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