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

The brand of Swiss financial institution Credit score 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 bunch of individuals and entities have filed a class action lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over business dealings related to Russian oligarchs, regulation agency Pomerantz LLP mentioned.

Credit Suisse did not remark when contacted by Reuters.

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

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"The complaint alleges that, throughout the category interval, defendants made materially false and deceptive statements regarding the corporate's business, operations, and compliance policies," Pomerantz stated in the assertion.

The law firm alleged disclosure shortcomings around a securitisation deal. It cited in its assertion a Financial Times story from February in which the newspaper reported that Credit score 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 dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Instances stated that after the publication of its article, Credit score Suisse stated in a press release that the transaction “priced consistent with different significant danger transactions, provided aggressive funding and hedging terms for our skilled investor shoppers 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 at hand over paperwork related to the financing of yachts and private jets owned by potentially sanctioned individuals. learn extra

On March 3, Credit score Suisse mentioned no client information had been erased throughout the bank when it requested investors to destroy documents referring to a transaction final November, reacting to an additional Monetary Times 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 inner document seen by Reuters. read extra

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

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Reporting by Paul Carrel Editing by Frances Kerry

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