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 workplace in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Picture

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April 30 (Reuters) - A group of people and entities have filed a class action lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss bank misled buyers over enterprise dealings related to Russian oligarchs, law firm Pomerantz LLP stated.

Credit Suisse did not remark 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 mentioned in a press release issued late on Friday.

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"The grievance alleges that, all through the category period, defendants made materially false and deceptive statements relating to the corporate's enterprise, operations, and compliance policies," Pomerantz stated within the assertion.

The law agency alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Monetary Times story from February by which the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest customers' yachts and personal jets, in an unusual use of derivatives to dump the dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Times stated that after the publication of its article, Credit score Suisse said in a press release that the transaction “priced according to different vital threat transactions, offered aggressive investment and hedging terms for our skilled investor purchasers whereas increasing the capital flexibility of the bank.”

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 potentially sanctioned individuals. learn more

On March 3, Credit score Suisse mentioned no shopper data had been erased throughout the bank when it requested investors to destroy documents regarding a transaction last November, reacting to an additional Monetary Occasions report associated to oligarchs.

Credit Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank stated 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 series of costly hits and a sequence of legal cases that it has described as legacy matters. read extra

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Reporting by Paul Carrel Enhancing by Frances Kerry

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