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

The logo of Swiss bank Credit Suisse is seen at a department office in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Photograph

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

Credit Suisse did not remark when contacted by Reuters.

The lawsuit, filed in a New York district courtroom, is on behalf of individuals 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 grievance alleges that, all through the category period, defendants made materially false and misleading statements relating to the company's business, operations, and compliance policies," Pomerantz said in the assertion.

The regulation agency alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Monetary Occasions 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 uncommon use of derivatives to offload the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Occasions said that after the publication of its article, Credit score Suisse stated in a press release that the transaction “priced consistent with other vital risk transactions, provided aggressive funding and hedging terms for our skilled investor clients 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 handy over documents related to the financing of yachts and private jets owned by probably sanctioned people. learn extra

On March 3, Credit score Suisse stated no client data had been erased inside the financial institution when it asked investors to destroy documents referring to 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 mentioned on March 28 in an internal doc seen by Reuters. read more

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

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Reporting by Paul Carrel Editing by Frances Kerry

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