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

The brand of Swiss financial institution Credit 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 people and entities have filed a category action lawsuit towards Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over enterprise dealings related to Russian oligarchs, legislation agency Pomerantz LLP said.

Credit Suisse didn't remark 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 said in a statement issued late on Friday.

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"The complaint alleges that, throughout the category period, defendants made materially false and deceptive statements regarding the company's business, operations, and compliance policies," Pomerantz mentioned within the statement.

The law firm alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Monetary Times story from February in which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest clients' yachts and personal jets, in an unusual use of derivatives to offload the dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Occasions said that after the publication of its article, Credit Suisse said in a statement that the transaction “priced according to other vital risk transactions, offered competitive investment and hedging phrases for our professional 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 score Suisse to hand over paperwork related to the financing of yachts and personal jets owned by probably sanctioned individuals. learn extra

On March 3, Credit score Suisse stated no shopper knowledge had been erased inside the financial institution when it asked investors to destroy paperwork regarding a transaction final November, reacting to a further Financial Times report related to oligarchs.

Credit score Suisse stopped pursuing new enterprise in Russia after the invasion of Ukraine on Feb. 24, the Swiss financial institution stated on March 28 in an internal document seen by Reuters. read extra

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a series of costly hits and a collection of authorized cases that it has described as legacy matters. read extra

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Reporting by Paul Carrel Editing by Frances Kerry

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