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

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

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April 30 (Reuters) - A group of people and entities have filed a class action 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 firm Pomerantz LLP stated.

Credit score Suisse did not remark when contacted by Reuters.

The lawsuit, filed in a New York district court, 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 grievance alleges that, all through the category interval, defendants made materially false and deceptive statements regarding the company's business, operations, and compliance policies," Pomerantz mentioned within the statement.

The regulation firm alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Financial Occasions story from February through which the newspaper reported that Credit score 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 related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Instances stated that after the publication of its article, Credit score Suisse said in an announcement that the transaction “priced in step with different important risk transactions, supplied aggressive investment and hedging phrases for our professional investor shoppers whereas growing the capital flexibility of the bank.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit Suisse at hand over documents associated to the financing of yachts and private jets owned by probably sanctioned people. read more

On March 3, Credit Suisse stated no client data had been erased throughout the bank when it requested buyers to destroy documents regarding a transaction last November, reacting to a further Monetary Instances report associated to oligarchs.

Credit Suisse stopped pursuing new enterprise in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank mentioned on March 28 in an inner doc seen by Reuters. learn more

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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