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

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April 30 (Reuters) - A bunch of people and entities have filed a class motion lawsuit towards Credit Suisse (CSGN.S), alleging that the Swiss bank misled buyers over enterprise dealings associated to Russian oligarchs, legislation agency Pomerantz LLP said.

Credit score Suisse didn't remark 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 said in an announcement issued late on Friday.

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"The grievance alleges that, throughout the class period, defendants made materially false and misleading statements concerning the company's business, operations, and compliance insurance policies," Pomerantz said in the statement.

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

The Financial Instances said that after the publication of its article, Credit Suisse said in a press release that the transaction “priced according to different vital danger transactions, provided aggressive funding and hedging terms for our professional investor purchasers while rising the capital flexibility of the bank.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit Suisse to hand over documents related to the financing of yachts and private jets owned by probably sanctioned individuals. read more

On March 3, Credit Suisse mentioned no client data had been erased throughout the financial institution when it requested traders to destroy documents referring to a transaction final November, reacting to an extra Monetary Occasions report related to oligarchs.

Credit Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss financial institution said on March 28 in an inside document seen by Reuters. read more

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a sequence of costly hits and a sequence of legal cases that it has described as legacy matters. read more

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Reporting by Paul Carrel Enhancing by Frances Kerry

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