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

The logo of Swiss bank Credit Suisse is seen at a department workplace in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Photo

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April 30 (Reuters) - A gaggle of individuals and entities have filed a class action lawsuit towards Credit Suisse (CSGN.S), alleging that the Swiss bank misled investors over business dealings associated to Russian oligarchs, regulation agency Pomerantz LLP mentioned.

Credit Suisse did not comment when contacted by Reuters.

The lawsuit, filed in a New York district court docket, is on behalf of people and entities who acquired Credit 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, all through the class period, defendants made materially false and misleading statements relating to the corporate's business, operations, and compliance policies," Pomerantz said in the assertion.

The law firm alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Financial Instances story from February through which the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest customers' yachts and private jets, in an uncommon use of derivatives to offload the dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Times stated that after the publication of its article, Credit Suisse said in an announcement that the transaction “priced in line with different vital danger transactions, offered competitive investment and hedging terms for our skilled 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 Suisse to hand over paperwork related to the financing of yachts and private jets owned by doubtlessly sanctioned individuals. read extra

On March 3, Credit Suisse stated no shopper information had been erased inside the bank when it requested investors to destroy paperwork relating to a transaction last November, reacting to an additional Monetary Times 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 more

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

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Reporting by Paul Carrel Editing by Frances Kerry

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