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

The brand of Swiss bank Credit score 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 action lawsuit towards Credit Suisse (CSGN.S), alleging that the Swiss bank misled buyers over enterprise dealings related to Russian oligarchs, legislation firm Pomerantz LLP mentioned.

Credit score Suisse didn't 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 mentioned 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 deceptive statements regarding the company's business, operations, and compliance policies," Pomerantz stated within the statement.

The legislation firm alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Financial Times story from February wherein the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest prospects' yachts and private jets, in an uncommon use of derivatives to dump the dangers 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 an announcement that the transaction “priced consistent with different significant danger transactions, offered competitive investment and hedging terms for our professional investor clients whereas rising the capital flexibility of the bank.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit score Suisse at hand over documents related to the financing of yachts and private jets owned by doubtlessly sanctioned individuals. read more

On March 3, Credit score Suisse said no client knowledge had been erased inside the financial institution when it requested traders to destroy documents referring to a transaction final November, reacting to a further Monetary Instances report associated to oligarchs.

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

Credit Suisse, which reported a first-quarter loss this week, has been dented by a collection of costly hits and a sequence of authorized cases that it has described as legacy matters. read extra

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Reporting by Paul Carrel Modifying by Frances Kerry

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