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

The brand of Swiss bank Credit score 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 individuals and entities have filed a category action lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over business dealings related to Russian oligarchs, law 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 score 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 complaint alleges that, all through the class interval, defendants made materially false and deceptive statements relating to the corporate's business, operations, and compliance insurance policies," Pomerantz stated within the assertion.

The regulation agency alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Monetary Instances story from February in 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 uncommon use of derivatives to offload the dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Occasions mentioned that after the publication of its article, Credit score Suisse said in a statement that the transaction “priced consistent with different significant threat transactions, supplied competitive investment and hedging phrases for our professional investor purchasers while growing the capital flexibility of the bank.”

The lawsuit also referred to a request made by U.S. lawmakers in March for Credit score Suisse handy over documents associated to the financing of yachts and personal jets owned by probably sanctioned individuals. read extra

On March 3, Credit Suisse stated no consumer data had been erased within the financial institution when it requested buyers to destroy documents referring to a transaction last November, reacting to a further 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 financial institution stated on March 28 in an inner document seen by Reuters. learn more

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a collection of pricey hits and a series of legal cases that it has described as legacy matters. learn extra

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Reporting by Paul Carrel Editing by Frances Kerry

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