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

The emblem of Swiss bank Credit score Suisse is seen at a branch workplace in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Photograph

Register

April 30 (Reuters) - A bunch of individuals and entities have filed a class motion lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss bank misled investors over enterprise dealings related to Russian oligarchs, regulation firm Pomerantz LLP said.

Credit Suisse didn't comment when contacted by Reuters.

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

Register

"The complaint alleges that, all through the class period, defendants made materially false and misleading statements relating to the company's business, operations, and compliance policies," Pomerantz stated within the statement.

The regulation agency 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 Suisse had securitised a portfolio of loans linked to its wealthiest prospects' yachts and personal jets, in an uncommon use of derivatives to offload the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Times stated that after the publication of its article, Credit score Suisse stated in an announcement that the transaction “priced in keeping with other important threat transactions, offered competitive investment and hedging terms for our professional investor clients whereas increasing the capital flexibility of the bank.”

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

On March 3, Credit Suisse mentioned no consumer information had been erased inside the financial institution when it requested traders to destroy documents relating to a transaction final November, reacting to an additional Monetary Times report associated to oligarchs.

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

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a sequence of pricey hits and a collection of authorized instances that it has described as legacy issues. read more

Register

Reporting by Paul Carrel Editing by Frances Kerry

Our Standards: The Thomson Reuters Belief Principles.