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

The brand of Swiss financial institution 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 people and entities have filed a class action lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over business dealings related to Russian oligarchs, regulation agency Pomerantz LLP mentioned.

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 statement issued late on Friday.

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"The grievance alleges that, throughout the category interval, defendants made materially false and deceptive statements regarding the corporate's enterprise, operations, and compliance insurance policies," Pomerantz stated in the statement.

The regulation firm alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Monetary Times 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 dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Times mentioned that after the publication of its article, Credit score Suisse said in a statement that the transaction “priced in keeping with different vital threat transactions, supplied aggressive investment and hedging terms for our professional investor shoppers 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 Suisse at hand over paperwork associated to the financing of yachts and personal jets owned by doubtlessly sanctioned individuals. learn more

On March 3, Credit Suisse stated no shopper knowledge had been erased throughout the financial institution when it asked investors to destroy documents regarding a transaction last November, reacting to an extra Financial Occasions report related to oligarchs.

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

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

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Reporting by Paul Carrel Enhancing by Frances Kerry

Our Requirements: The Thomson Reuters Trust Rules.