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

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

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April 30 (Reuters) - A group of individuals and entities have filed a category motion lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over enterprise dealings associated to Russian oligarchs, law firm Pomerantz LLP mentioned.

Credit Suisse did not comment when contacted by Reuters.

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

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"The complaint alleges that, all through the category period, defendants made materially false and deceptive statements concerning the company's business, operations, and compliance insurance policies," Pomerantz mentioned in the statement.

The legislation firm alleged disclosure shortcomings around a securitisation deal. It cited in its assertion 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 personal jets, in an unusual use of derivatives to offload the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Times said that after the publication of its article, Credit score Suisse stated in an announcement that the transaction “priced in step with other vital risk transactions, offered aggressive investment and hedging terms for our professional investor clients while increasing the capital flexibility of the bank.”

The lawsuit also 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 personal jets owned by doubtlessly sanctioned individuals. learn more

On March 3, Credit score Suisse stated no shopper data had been erased throughout the financial institution when it asked traders to destroy paperwork referring to a transaction final November, reacting to an extra 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 bank stated on March 28 in an inside doc seen by Reuters. read more

Credit Suisse, which reported a first-quarter loss this week, has been dented by a series of costly hits and a collection of legal circumstances that it has described as legacy issues. learn more

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Reporting by Paul Carrel Enhancing by Frances Kerry

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