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

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

Credit score Suisse didn't 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 mentioned in a press release issued late on Friday.

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

The law agency alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Monetary Instances story from February in 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 offload the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Instances mentioned that after the publication of its article, Credit Suisse said in a press release that the transaction “priced in line with different significant danger transactions, supplied aggressive funding and hedging phrases for our skilled investor purchasers while growing the capital flexibility of the financial institution.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit score Suisse at hand over paperwork associated to the financing of yachts and personal jets owned by probably sanctioned individuals. learn more

On March 3, Credit Suisse stated no consumer knowledge had been erased within the bank when it requested investors to destroy documents relating to a transaction last November, reacting to a further Financial Times report related to oligarchs.

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

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

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Reporting by Paul Carrel Editing by Frances Kerry

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