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

The brand of Swiss financial institution Credit Suisse is seen at a department office in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Picture

Register

April 30 (Reuters) - A group of people and entities have filed a class action lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over enterprise dealings associated to Russian oligarchs, regulation agency Pomerantz LLP mentioned.

Credit score Suisse didn't comment when contacted by Reuters.

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

Register

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

The regulation agency alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Monetary 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 private jets, in an unusual use of derivatives to offload the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Instances said that after the publication of its article, Credit Suisse mentioned in an announcement that the transaction “priced in line with different vital risk transactions, supplied aggressive investment and hedging terms for our professional investor clients whereas rising the capital flexibility of the bank.”

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

On March 3, Credit Suisse said no shopper data had been erased within the bank when it requested buyers to destroy paperwork relating to a transaction last November, reacting to a further Financial Times report associated to oligarchs.

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

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a collection of costly hits and a collection of authorized instances that it has described as legacy issues. learn extra

Register

Reporting by Paul Carrel Editing by Frances Kerry

Our Requirements: The Thomson Reuters Trust Rules.