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

The emblem of Swiss financial institution Credit Suisse is seen at a branch workplace 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 class motion lawsuit towards Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over business dealings associated to Russian oligarchs, law 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 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 relating to the company's business, operations, and compliance policies," Pomerantz said in the statement.

The law firm alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial Instances story from February through which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest prospects' yachts and personal jets, in an unusual use of derivatives to dump the dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Occasions stated that after the publication of its article, Credit Suisse stated in a press release that the transaction “priced in line with other vital danger transactions, offered competitive funding and hedging phrases for our skilled investor purchasers whereas growing 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 at hand over documents associated to the financing of yachts and private jets owned by doubtlessly sanctioned individuals. learn more

On March 3, Credit Suisse mentioned no client knowledge had been erased throughout the financial institution when it requested buyers to destroy paperwork regarding 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 stated 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 expensive hits and a collection of legal cases that it has described as legacy issues. read extra

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Reporting by Paul Carrel Enhancing by Frances Kerry

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