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

The brand of Swiss financial institution 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 group of individuals and entities have filed a class motion lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over business dealings associated to Russian oligarchs, legislation agency Pomerantz LLP said.

Credit score 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 stated in a press release issued late on Friday.

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"The grievance alleges that, throughout the class period, defendants made materially false and misleading statements concerning the company's enterprise, operations, and compliance insurance policies," Pomerantz said within the assertion.

The law agency alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Monetary Occasions story from February during which the newspaper reported that Credit score 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 risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Instances mentioned that after the publication of its article, Credit score Suisse mentioned in an announcement that the transaction “priced in line with other vital danger transactions, provided competitive investment and hedging phrases for our skilled investor shoppers whereas rising 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 documents related to the financing of yachts and personal jets owned by potentially sanctioned people. learn more

On March 3, Credit score Suisse stated no shopper data had been erased throughout the bank when it asked investors to destroy paperwork relating to a transaction final November, reacting to a further Financial Instances report associated to oligarchs.

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

Credit Suisse, which reported a first-quarter loss this week, has been dented by a sequence of pricey hits and a collection of legal instances that it has described as legacy issues. read more

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Reporting by Paul Carrel Enhancing by Frances Kerry

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