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

The brand of Swiss bank Credit score Suisse is seen at a department office 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 category action lawsuit towards Credit Suisse (CSGN.S), alleging that the Swiss bank misled traders over business dealings associated to Russian oligarchs, legislation firm Pomerantz LLP said.

Credit score Suisse didn't 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 grievance alleges that, all through the category interval, defendants made materially false and misleading statements concerning the company's enterprise, operations, and compliance insurance policies," Pomerantz said within the assertion.

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

The Financial Occasions said that after the publication of its article, Credit score Suisse stated in a statement that the transaction “priced in keeping with different important threat transactions, offered aggressive investment and hedging phrases for our skilled investor shoppers 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 to hand over documents associated to the financing of yachts and personal jets owned by probably sanctioned individuals. read more

On March 3, Credit Suisse stated no client knowledge had been erased inside the bank when it requested traders to destroy documents referring to a transaction last 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 bank mentioned on March 28 in an internal doc seen by Reuters. learn more

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

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Reporting by Paul Carrel Editing by Frances Kerry

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