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

The logo of Swiss bank Credit score 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 motion lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over enterprise dealings associated to Russian oligarchs, law firm Pomerantz LLP said.

Credit Suisse didn't comment when contacted by Reuters.

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

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"The complaint alleges that, throughout the category interval, defendants made materially false and misleading statements regarding the corporate's business, operations, and compliance policies," Pomerantz said in the assertion.

The legislation agency alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Monetary Times story from February by which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest customers' yachts and personal jets, in an uncommon use of derivatives to dump the dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Instances stated that after the publication of its article, Credit score Suisse mentioned in an announcement that the transaction “priced in line with different significant risk transactions, provided aggressive investment and hedging phrases for our skilled investor shoppers 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 to hand over documents associated to the financing of yachts and private jets owned by potentially sanctioned people. learn more

On March 3, Credit Suisse said no client knowledge had been erased within the bank when it asked traders to destroy documents relating to a transaction last November, reacting to a further Financial Times report related to oligarchs.

Credit score Suisse stopped pursuing new enterprise in Russia after the invasion of Ukraine on Feb. 24, the Swiss financial institution stated on March 28 in an inside document 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 collection of authorized cases that it has described as legacy matters. learn extra

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Reporting by Paul Carrel Modifying by Frances Kerry

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