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

The logo of Swiss financial institution Credit score Suisse is seen at a branch office in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Photo

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April 30 (Reuters) - A bunch of individuals and entities have filed a class motion lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over business dealings related to Russian oligarchs, legislation firm Pomerantz LLP mentioned.

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

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"The criticism alleges that, throughout the class interval, defendants made materially false and deceptive statements concerning the corporate's business, operations, and compliance policies," Pomerantz stated within the statement.

The law agency alleged disclosure shortcomings around 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 prospects' yachts and private jets, in an uncommon use of derivatives to dump the dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Instances mentioned that after the publication of its article, Credit score Suisse said in a statement that the transaction “priced consistent with different important danger transactions, offered competitive funding and hedging terms for our skilled investor purchasers whereas rising the capital flexibility of the bank.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit score Suisse handy over documents associated to the financing of yachts and private jets owned by probably sanctioned individuals. read more

On March 3, Credit Suisse said no shopper data had been erased throughout the bank when it requested investors to destroy documents regarding a transaction last November, reacting to an additional Financial Instances report associated to oligarchs.

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

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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