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

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

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April 30 (Reuters) - A bunch of people and entities have filed a class action lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss bank misled buyers over enterprise dealings related to Russian oligarchs, legislation agency Pomerantz LLP stated.

Credit score Suisse did not comment when contacted by Reuters.

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

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"The grievance alleges that, throughout the class interval, defendants made materially false and deceptive statements relating to the company's business, operations, and compliance policies," Pomerantz mentioned within the assertion.

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

The Financial Times said that after the publication of its article, Credit Suisse said in an announcement that the transaction “priced in line with different important danger transactions, provided competitive funding and hedging phrases for our skilled investor clients whereas increasing the capital flexibility of the financial institution.”

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

On March 3, Credit Suisse mentioned no consumer information had been erased within the bank when it requested buyers to destroy paperwork regarding a transaction final November, reacting to an additional Financial Times report associated to oligarchs.

Credit score 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. read 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 instances that it has described as legacy matters. learn extra

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Reporting by Paul Carrel Enhancing by Frances Kerry

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