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

The logo 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 bunch of individuals and entities have filed a category action lawsuit towards Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over business dealings related to Russian oligarchs, legislation firm Pomerantz LLP mentioned.

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 Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz mentioned in an announcement issued late on Friday.

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"The criticism alleges that, all through the class interval, defendants made materially false and deceptive statements relating to the corporate's business, operations, and compliance policies," Pomerantz said in the statement.

The legislation agency alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Financial Occasions story from February in 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 uncommon use of derivatives to dump the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Times mentioned that after the publication of its article, Credit score Suisse said in a press release that the transaction “priced in step with other significant threat transactions, supplied aggressive funding and hedging terms for our professional investor purchasers whereas rising the capital flexibility of the bank.”

The lawsuit also referred to a request made by U.S. lawmakers in March for Credit score Suisse handy over documents associated to the financing of yachts and personal jets owned by probably sanctioned individuals. learn more

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

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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