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

The brand of Swiss bank Credit Suisse is seen at a branch 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 score Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over business dealings related to Russian oligarchs, regulation agency Pomerantz LLP stated.

Credit score Suisse did not remark when contacted by Reuters.

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

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"The criticism alleges that, throughout the category interval, defendants made materially false and misleading statements concerning the corporate's business, operations, and compliance insurance policies," Pomerantz stated in the assertion.

The legislation agency alleged disclosure shortcomings around a securitisation deal. It cited in its assertion a Monetary Instances story from February by which the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest clients' yachts and personal jets, in an uncommon use of derivatives to dump the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Instances mentioned that after the publication of its article, Credit score Suisse stated in a press release that the transaction “priced in keeping with other important danger transactions, supplied aggressive funding and hedging terms for our professional investor purchasers whereas increasing the capital flexibility of the financial institution.”

The lawsuit also referred to a request made by U.S. lawmakers in March for Credit Suisse handy over documents related to the financing of yachts and private jets owned by doubtlessly sanctioned people. read more

On March 3, Credit Suisse stated no shopper data had been erased inside the financial institution when it requested buyers to destroy paperwork relating to a transaction final November, reacting to an additional Financial Instances 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. learn extra

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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