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

The emblem of Swiss bank Credit score 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 group of individuals and entities have filed a class action lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over business dealings associated to Russian oligarchs, regulation firm Pomerantz LLP stated.

Credit Suisse did not remark when contacted by Reuters.

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

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

The legislation agency alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Monetary 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 personal jets, in an unusual use of derivatives to dump the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Occasions mentioned that after the publication of its article, Credit score Suisse mentioned in a press release that the transaction “priced in keeping with different significant risk transactions, offered competitive investment and hedging phrases for our skilled investor shoppers while increasing the capital flexibility of the financial institution.”

The lawsuit also referred to a request made by U.S. lawmakers in March for Credit score Suisse handy over paperwork related to the financing of yachts and private jets owned by probably sanctioned individuals. read more

On March 3, Credit Suisse mentioned no consumer data had been erased throughout the financial institution when it requested investors to destroy paperwork referring to a transaction final November, reacting to an extra Monetary Times report associated to oligarchs.

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

Credit Suisse, which reported a first-quarter loss this week, has been dented by a series of expensive hits and a series of legal instances that it has described as legacy matters. learn more

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Reporting by Paul Carrel Modifying by Frances Kerry

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