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

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

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April 30 (Reuters) - A group of people and entities have filed a category action lawsuit towards Credit Suisse (CSGN.S), alleging that the Swiss bank misled traders over business dealings associated to Russian oligarchs, legislation agency 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 an announcement issued late on Friday.

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"The criticism alleges that, throughout the class period, defendants made materially false and misleading statements regarding the company's enterprise, operations, and compliance insurance policies," Pomerantz said within the statement.

The legislation agency alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Financial Instances story from February during which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest clients' yachts and private jets, in an uncommon use of derivatives to offload the dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Times stated that after the publication of its article, Credit score Suisse stated in a press release that the transaction “priced in keeping with other vital danger transactions, supplied aggressive investment and hedging terms for our professional investor purchasers while growing the capital flexibility of the bank.”

The lawsuit also 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 personal jets owned by doubtlessly sanctioned people. read more

On March 3, Credit Suisse mentioned no shopper information had been erased within the bank when it requested buyers to destroy paperwork regarding a transaction final November, reacting to an extra Monetary Times report related to oligarchs.

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

Credit Suisse, which reported a first-quarter loss this week, has been dented by a series of expensive hits and a sequence of authorized circumstances that it has described as legacy issues. read extra

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Reporting by Paul Carrel Enhancing by Frances Kerry

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