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

The emblem of Swiss bank Credit score Suisse is seen at a department workplace in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Photo

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April 30 (Reuters) - A bunch of individuals and entities have filed a class action lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over business dealings related to Russian oligarchs, regulation firm Pomerantz LLP stated.

Credit Suisse did not 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 score Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz stated in an announcement issued late on Friday.

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"The grievance alleges that, all through the class interval, defendants made materially false and misleading statements concerning the corporate's enterprise, operations, and compliance policies," Pomerantz mentioned in the assertion.

The legislation firm alleged disclosure shortcomings around a securitisation deal. It cited in its assertion a Monetary Instances story from February during 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 dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Occasions said that after the publication of its article, Credit score Suisse mentioned in a press release that the transaction “priced in line with different important risk transactions, provided competitive funding and hedging terms for our professional investor shoppers whereas growing the capital flexibility of the financial institution.”

The lawsuit also 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 personal jets owned by potentially sanctioned individuals. read extra

On March 3, Credit score Suisse stated no consumer data had been erased within the bank when it requested investors to destroy documents regarding a transaction last November, reacting to a further Financial Times report associated to oligarchs.

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

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a collection of expensive hits and a series of authorized 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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