Credit Suisse sued in U.S. over alleged business associated to oligarchs

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

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April 30 (Reuters) - A bunch of people and entities have filed a category action lawsuit towards Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over enterprise dealings related to Russian oligarchs, legislation agency Pomerantz LLP stated.

Credit score Suisse did not comment 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 stated in a statement issued late on Friday.

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"The grievance alleges that, throughout the class interval, defendants made materially false and misleading statements relating to the corporate's business, operations, and compliance insurance policies," Pomerantz mentioned within the assertion.

The regulation agency alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Monetary Occasions story from February through which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest prospects' yachts and private jets, in an unusual use of derivatives to dump the dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Occasions said that after the publication of its article, Credit score Suisse mentioned in an announcement that the transaction “priced in line with different vital threat transactions, supplied competitive funding and hedging terms for our skilled investor clients while growing the capital flexibility of the bank.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit Suisse to hand over paperwork related to the financing of yachts and personal jets owned by doubtlessly sanctioned individuals. learn more

On March 3, Credit Suisse stated no shopper data had been erased throughout the bank when it asked investors to destroy documents regarding a transaction last November, reacting to an additional Monetary 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 document seen by Reuters. learn extra

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

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Reporting by Paul Carrel Enhancing by Frances Kerry

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