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

The logo of Swiss financial institution 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 people and entities have filed a class action lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss bank misled buyers over enterprise dealings related to Russian oligarchs, regulation agency Pomerantz LLP stated.

Credit Suisse did not remark when contacted by Reuters.

The lawsuit, filed in a New York district court, is on behalf of individuals and entities who acquired Credit Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz stated in a press release issued late on Friday.

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"The complaint alleges that, all through the category period, defendants made materially false and misleading statements relating to the company's enterprise, operations, and compliance insurance policies," Pomerantz stated within the statement.

The law agency alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Financial Occasions story from February during which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest prospects' yachts and personal jets, in an unusual use of derivatives to dump the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Instances stated that after the publication of its article, Credit Suisse said in a statement that the transaction “priced consistent with different important risk transactions, offered competitive investment and hedging phrases for our skilled investor clients whereas rising the capital flexibility of the financial institution.”

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

On March 3, Credit score Suisse mentioned no consumer information had been erased throughout the financial institution when it requested investors to destroy paperwork relating to a transaction last November, reacting to a further Monetary Instances report related to oligarchs.

Credit score Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank said on March 28 in an internal doc seen by Reuters. learn extra

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

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Reporting by Paul Carrel Editing by Frances Kerry

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