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

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

Register

April 30 (Reuters) - A bunch of individuals and entities have filed a class action lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss bank misled buyers over business dealings associated to Russian oligarchs, regulation agency Pomerantz LLP said.

Credit score Suisse didn't comment when contacted by Reuters.

The lawsuit, filed in a New York district court, is on behalf of people and entities who acquired Credit score Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz stated in a statement issued late on Friday.

Register

"The grievance alleges that, throughout the category period, defendants made materially false and misleading statements concerning the corporate's enterprise, operations, and compliance policies," Pomerantz said within the assertion.

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

The Financial Times said that after the publication of its article, Credit Suisse said in a press release that the transaction “priced consistent with other significant risk transactions, supplied aggressive funding and hedging terms for our professional investor purchasers while increasing 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 to hand over documents related to the financing of yachts and personal jets owned by doubtlessly sanctioned individuals. learn extra

On March 3, Credit score Suisse stated no client knowledge had been erased inside the bank when it requested investors to destroy documents referring to a transaction last November, reacting to a further Monetary Instances report related to oligarchs.

Credit score Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss financial institution mentioned on March 28 in an internal doc seen by Reuters. read more

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

Register

Reporting by Paul Carrel Editing by Frances Kerry

Our Requirements: The Thomson Reuters Trust Rules.