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

The logo of Swiss bank Credit Suisse is seen at a branch 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 Suisse (CSGN.S), alleging that the Swiss bank misled investors over business dealings related to Russian oligarchs, law firm Pomerantz LLP mentioned.

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 score 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 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 stated in the assertion.

The regulation agency alleged disclosure shortcomings around a securitisation deal. It cited in its assertion a Monetary Occasions story from February in 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 dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Occasions stated that after the publication of its article, Credit score Suisse mentioned in an announcement that the transaction “priced in line with different vital danger transactions, offered competitive investment and hedging phrases for our professional investor clients while increasing the capital flexibility of the financial institution.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit score Suisse at hand over documents related to the financing of yachts and personal jets owned by probably sanctioned people. learn extra

On March 3, Credit Suisse said no consumer information had been erased throughout the financial institution when it asked buyers to destroy paperwork referring to a transaction last November, reacting to a further Financial Occasions report related to oligarchs.

Credit score Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss financial institution said on March 28 in an inside document seen by Reuters. learn more

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

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Reporting by Paul Carrel Editing by Frances Kerry

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