Credit score Suisse sued in U.S. over alleged business related 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 Photograph

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April 30 (Reuters) - A bunch of people and entities have filed a category motion lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over business dealings associated to Russian oligarchs, regulation firm Pomerantz LLP stated.

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 stated in a press release issued late on Friday.

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"The criticism alleges that, all through the class interval, defendants made materially false and misleading statements regarding the company's business, operations, and compliance policies," Pomerantz mentioned within the statement.

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

The Monetary Occasions stated that after the publication of its article, Credit Suisse mentioned in an announcement that the transaction “priced in step with different vital threat transactions, offered competitive funding and hedging phrases for our skilled investor purchasers whereas increasing 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 related to the financing of yachts and private jets owned by probably sanctioned individuals. learn extra

On March 3, Credit score Suisse stated no client information had been erased throughout the financial institution when it requested traders to destroy paperwork referring to a transaction final November, reacting to a further Financial Occasions report related to oligarchs.

Credit 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. learn extra

Credit Suisse, which reported a first-quarter loss this week, has been dented by a collection of pricey hits and a series of authorized cases that it has described as legacy issues. read more

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Reporting by Paul Carrel Editing by Frances Kerry

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