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

The emblem of Swiss financial institution 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 gaggle of individuals and entities have filed a category action lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss bank misled buyers over business dealings associated to Russian oligarchs, regulation agency Pomerantz LLP said.

Credit Suisse didn't remark when contacted by Reuters.

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

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

The law firm alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial Times story from February through which the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest clients' yachts and personal jets, in an unusual 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 Suisse mentioned in a press release that the transaction “priced in step with different important danger transactions, supplied competitive funding and hedging terms for our professional investor clients while rising the capital flexibility of the financial institution.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit Suisse to hand over paperwork related to the financing of yachts and private jets owned by potentially sanctioned people. read extra

On March 3, Credit Suisse stated no consumer information had been erased inside the financial institution when it requested investors to destroy paperwork relating to a transaction last November, reacting to a further Financial Instances report related to oligarchs.

Credit 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 inside document seen by Reuters. learn extra

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

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Reporting by Paul Carrel Enhancing by Frances Kerry

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