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

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

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

Credit Suisse didn't comment when contacted by Reuters.

The lawsuit, filed in a New York district courtroom, is on behalf of individuals and entities who acquired Credit Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz mentioned in a press release issued late on Friday.

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"The criticism alleges that, all through the category interval, defendants made materially false and deceptive statements regarding the corporate's business, operations, and compliance insurance policies," Pomerantz mentioned in the assertion.

The regulation firm alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial Instances story from February by 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 offload the dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Instances stated that after the publication of its article, Credit score Suisse stated in a press release that the transaction “priced in keeping with other important danger transactions, provided competitive funding and hedging terms for our professional investor clients while rising the capital flexibility of the financial institution.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit Suisse handy 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 consumer data had been erased throughout the bank when it requested buyers to destroy documents regarding a transaction last November, reacting to an extra 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. read extra

Credit Suisse, which reported a first-quarter loss this week, has been dented by a sequence of expensive hits and a sequence of authorized cases that it has described as legacy matters. learn more

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Reporting by Paul Carrel Editing by Frances Kerry

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