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

The emblem of Swiss bank Credit Suisse is seen at a branch office in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Picture

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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 firm Pomerantz LLP said.

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

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

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"The grievance alleges that, throughout the category interval, defendants made materially false and misleading statements relating to the company's enterprise, operations, and compliance policies," Pomerantz mentioned in the statement.

The law agency alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Monetary Occasions story from February wherein 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 related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Instances stated that after the publication of its article, Credit Suisse stated in a statement that the transaction “priced in keeping with other important danger transactions, supplied aggressive investment and hedging terms for our professional investor purchasers 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 score Suisse handy over documents associated to the financing of yachts and private jets owned by doubtlessly sanctioned individuals. learn extra

On March 3, Credit score Suisse said no shopper information had been erased within the bank when it asked buyers to destroy paperwork relating to a transaction last November, reacting to a further Financial Occasions 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 inside 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 sequence of authorized instances that it has described as legacy issues. learn more

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Reporting by Paul Carrel Modifying by Frances Kerry

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