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

The logo of Swiss financial institution Credit score Suisse is seen at a branch workplace in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Photo

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April 30 (Reuters) - A gaggle of individuals and entities have filed a category motion lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over enterprise dealings related to Russian oligarchs, regulation firm Pomerantz LLP said.

Credit Suisse did not 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 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 grievance alleges that, all through the class interval, defendants made materially false and misleading statements relating to the corporate's enterprise, operations, and compliance policies," Pomerantz stated within the statement.

The regulation agency alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Monetary Occasions story from February in which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest customers' yachts and personal jets, in an uncommon use of derivatives to offload the dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Occasions said that after the publication of its article, Credit Suisse stated in a press release that the transaction “priced in step with different important danger transactions, provided aggressive investment and hedging terms for our skilled investor shoppers whereas increasing 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 doubtlessly sanctioned people. read extra

On March 3, Credit Suisse mentioned no shopper information had been erased inside the bank when it requested traders to destroy documents referring to a transaction final November, reacting to an extra Financial Occasions report related to oligarchs.

Credit Suisse stopped pursuing new enterprise in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank mentioned 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 sequence of legal instances that it has described as legacy matters. read more

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Reporting by Paul Carrel Modifying by Frances Kerry

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