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

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

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April 30 (Reuters) - A group of people and entities have filed a class action lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss bank misled traders over enterprise dealings related to Russian oligarchs, law agency Pomerantz LLP mentioned.

Credit score Suisse did not remark when contacted by Reuters.

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

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"The criticism alleges that, throughout the category interval, defendants made materially false and misleading statements concerning the corporate's enterprise, operations, and compliance insurance policies," Pomerantz stated in the assertion.

The law agency alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Financial Instances story from February by which the newspaper reported that Credit score 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 associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Instances said that after the publication of its article, Credit Suisse mentioned in a statement that the transaction “priced in keeping with other important risk transactions, offered aggressive investment and hedging terms for our professional investor clients while increasing the capital flexibility of the bank.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit score Suisse handy over paperwork associated to the financing of yachts and private jets owned by probably sanctioned people. read extra

On March 3, Credit Suisse said no shopper information had been erased throughout the bank when it requested buyers to destroy paperwork referring to a transaction final November, reacting to a further Monetary Instances report associated to oligarchs.

Credit Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss financial institution said on March 28 in an internal doc seen by Reuters. read extra

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

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Reporting by Paul Carrel Enhancing by Frances Kerry

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