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

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

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April 30 (Reuters) - A group of people and entities have filed a category motion lawsuit towards Credit Suisse (CSGN.S), alleging that the Swiss bank misled investors over enterprise dealings associated to Russian oligarchs, legislation agency Pomerantz LLP stated.

Credit Suisse did not remark 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 stated in a press release issued late on Friday.

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"The grievance alleges that, all through the class interval, defendants made materially false and deceptive statements concerning the corporate's enterprise, operations, and compliance policies," Pomerantz said in the statement.

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

The Financial Occasions stated that after the publication of its article, Credit Suisse said in a statement that the transaction “priced in line with different important danger transactions, offered aggressive funding 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 Suisse handy over paperwork associated to the financing of yachts and private jets owned by potentially sanctioned people. read extra

On March 3, Credit score Suisse mentioned no shopper information had been erased within the financial institution when it requested investors to destroy documents relating to a transaction last November, reacting to an additional Financial Occasions report associated to oligarchs.

Credit score Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank mentioned on March 28 in an inside 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 sequence of authorized cases 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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