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

The emblem of Swiss bank Credit Suisse is seen at a department workplace 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 category action lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over business dealings related to Russian oligarchs, legislation agency Pomerantz LLP stated.

Credit score Suisse didn't remark when contacted by Reuters.

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

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"The complaint alleges that, throughout the class interval, defendants made materially false and misleading statements regarding the company's business, operations, and compliance insurance policies," Pomerantz stated within the statement.

The law firm alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Financial Occasions story from February by which 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 Times stated that after the publication of its article, Credit score Suisse mentioned in a press release that the transaction “priced consistent with different significant risk transactions, provided aggressive investment and hedging terms for our professional investor purchasers whereas rising the capital flexibility of the bank.”

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

On March 3, Credit score Suisse mentioned no shopper knowledge had been erased inside the bank when it requested traders to destroy paperwork relating to a transaction last November, reacting to an extra Monetary Instances report associated to oligarchs.

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

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

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Reporting by Paul Carrel Enhancing by Frances Kerry

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