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

The logo of Swiss financial institution 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 gaggle of people and entities have filed a class motion lawsuit towards Credit Suisse (CSGN.S), alleging that the Swiss bank misled buyers over business dealings associated to Russian oligarchs, law firm Pomerantz LLP stated.

Credit score Suisse didn't comment 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 said in a statement issued late on Friday.

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"The complaint 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 mentioned within the statement.

The legislation agency alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Financial Occasions story from February through which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest clients' yachts and personal jets, in an uncommon use of derivatives to dump the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Instances mentioned that after the publication of its article, Credit Suisse mentioned in a press release that the transaction “priced consistent with other important risk transactions, offered competitive funding and hedging phrases for our professional investor clients 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 private jets owned by doubtlessly sanctioned people. learn more

On March 3, Credit Suisse said no client information had been erased throughout the bank when it requested traders to destroy paperwork referring to a transaction last November, reacting to an extra Financial Instances report related to oligarchs.

Credit 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 inner doc seen by Reuters. read extra

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

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Reporting by Paul Carrel Editing by Frances Kerry

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