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

The emblem of Swiss bank Credit score Suisse is seen at a branch office 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 action lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss bank misled traders over business dealings related to Russian oligarchs, law agency Pomerantz LLP stated.

Credit Suisse didn't comment when contacted by Reuters.

The lawsuit, filed in a New York district court docket, 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 press release issued late on Friday.

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"The criticism alleges that, throughout the category interval, defendants made materially false and misleading statements relating to the company's enterprise, operations, and compliance policies," Pomerantz stated in the assertion.

The regulation agency alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Monetary Instances story from February wherein 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 Monetary Occasions said that after the publication of its article, Credit Suisse mentioned in a press release that the transaction “priced consistent with other important risk transactions, supplied aggressive investment and hedging phrases for our skilled investor clients whereas rising the capital flexibility of the financial institution.”

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

On March 3, Credit score Suisse mentioned no client data had been erased throughout the financial institution when it asked buyers to destroy documents regarding a transaction final November, reacting to an additional Financial Instances report related to oligarchs.

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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