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

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

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April 30 (Reuters) - A gaggle of people and entities have filed a class action lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss bank misled buyers over business dealings associated to Russian oligarchs, regulation agency Pomerantz LLP mentioned.

Credit Suisse did not comment when contacted by Reuters.

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

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"The criticism alleges that, all through the class period, defendants made materially false and deceptive statements regarding the company's business, operations, and compliance policies," Pomerantz said within the assertion.

The regulation agency alleged disclosure shortcomings round 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 private jets, in an uncommon use of derivatives to dump the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Times stated that after the publication of its article, Credit Suisse stated in a statement that the transaction “priced consistent with different vital risk transactions, provided competitive funding and hedging phrases for our skilled investor shoppers whereas growing 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 documents associated to the financing of yachts and personal jets owned by probably sanctioned people. read extra

On March 3, Credit score Suisse said no consumer information had been erased within the financial institution when it asked investors to destroy paperwork referring to a transaction final November, reacting to an extra Monetary Instances report associated to oligarchs.

Credit Suisse stopped pursuing new enterprise in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank mentioned on March 28 in an internal document 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 series of legal instances that it has described as legacy matters. read extra

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Reporting by Paul Carrel Editing by Frances Kerry

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