Credit score 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 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 against Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over enterprise dealings related to Russian oligarchs, law firm Pomerantz LLP mentioned.

Credit score 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 Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz stated in a press release issued late on Friday.

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"The criticism alleges that, all through the class interval, defendants made materially false and misleading statements regarding the corporate's enterprise, operations, and compliance policies," Pomerantz said in the assertion.

The regulation firm alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial Instances story from February wherein 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 dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Instances said that after the publication of its article, Credit score Suisse said in an announcement that the transaction “priced in step with other significant threat transactions, provided competitive funding and hedging terms for our skilled investor shoppers while growing the capital flexibility of the bank.”

The lawsuit also 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 probably sanctioned individuals. learn more

On March 3, Credit Suisse stated no client knowledge had been erased throughout the bank when it requested buyers to destroy documents regarding a transaction final November, reacting to an extra Financial Occasions report associated to oligarchs.

Credit 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 inside document seen by Reuters. read extra

Credit Suisse, which reported a first-quarter loss this week, has been dented by a sequence of pricey 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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