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

The logo of Swiss bank Credit Suisse is seen at a branch workplace in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Photograph

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April 30 (Reuters) - A bunch of people and entities have filed a category action lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over business dealings related to Russian oligarchs, regulation agency Pomerantz LLP said.

Credit Suisse didn't remark when contacted by Reuters.

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

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"The grievance alleges that, all through the category period, defendants made materially false and deceptive statements regarding the corporate's enterprise, operations, and compliance insurance policies," Pomerantz mentioned within the statement.

The legislation agency alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Monetary Instances story from February during 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 risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Times said that after the publication of its article, Credit Suisse stated in an announcement that the transaction “priced according to other significant risk transactions, supplied competitive investment and hedging phrases for our skilled investor clients whereas rising the capital flexibility of the bank.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit Suisse at hand over documents associated to the financing of yachts and private jets owned by potentially sanctioned people. learn more

On March 3, Credit Suisse stated no client knowledge had been erased within the bank when it requested buyers to destroy paperwork regarding a transaction final November, reacting to an extra Financial Instances report associated to oligarchs.

Credit Suisse stopped pursuing new enterprise in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank stated on March 28 in an inside doc seen by Reuters. read extra

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

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Reporting by Paul Carrel Enhancing by Frances Kerry

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