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

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

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April 30 (Reuters) - A gaggle of individuals and entities have filed a class action lawsuit towards Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over business dealings associated to Russian oligarchs, law firm Pomerantz LLP stated.

Credit Suisse did not comment 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 stated in an announcement issued late on Friday.

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"The criticism alleges that, all through the class interval, defendants made materially false and deceptive statements relating to the corporate's business, operations, and compliance policies," Pomerantz said within the assertion.

The regulation agency alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial Occasions story from February through which the newspaper reported that Credit 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 Monetary Instances mentioned that after the publication of its article, Credit Suisse stated in an announcement that the transaction “priced in keeping with other significant risk transactions, supplied aggressive investment and hedging phrases for our skilled investor purchasers while increasing the capital flexibility of the financial institution.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit Suisse to hand over paperwork associated to the financing of yachts and personal jets owned by probably sanctioned people. learn extra

On March 3, Credit Suisse stated no client data had been erased within the bank when it requested traders to destroy documents relating to a transaction last November, reacting to a further Monetary Times report associated to oligarchs.

Credit Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss financial institution stated on March 28 in an inner doc seen by Reuters. learn more

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 Editing by Frances Kerry

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