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

The brand of Swiss bank Credit score 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 group of people and entities have filed a class action lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss bank misled investors over business dealings associated to Russian oligarchs, law agency Pomerantz LLP stated.

Credit score Suisse didn't comment 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 mentioned in a statement issued late on Friday.

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"The grievance alleges that, all through the class period, defendants made materially false and deceptive statements relating to the company's business, operations, and compliance policies," Pomerantz said in the statement.

The legislation firm alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Monetary Instances story from February by 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 offload the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Instances said that after the publication of its article, Credit Suisse said in an announcement that the transaction “priced according to different vital threat transactions, offered aggressive funding and hedging terms for our skilled investor clients while growing the capital flexibility of the bank.”

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

On March 3, Credit Suisse mentioned no consumer data had been erased inside the financial institution when it asked buyers to destroy paperwork regarding a transaction last November, reacting to an additional Monetary Instances report related to oligarchs.

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

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a series of pricey hits and a collection of authorized cases 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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