Credit Suisse sued in U.S. over alleged enterprise associated 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

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April 30 (Reuters) - A gaggle 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 associated 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 people and entities who acquired Credit Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz said in a press release issued late on Friday.

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"The complaint alleges that, throughout the category interval, defendants made materially false and deceptive statements relating to the corporate's business, operations, and compliance policies," Pomerantz said within the statement.

The regulation agency alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Financial Instances story from February wherein the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest customers' yachts and private jets, in an unusual use of derivatives to dump the dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

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

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

On March 3, Credit score Suisse mentioned no shopper data had been erased throughout the bank when it asked traders to destroy documents relating to a transaction last November, reacting to an extra 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 bank stated on March 28 in an inside doc seen by Reuters. learn more

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

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Reporting by Paul Carrel Editing by Frances Kerry

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