Credit Suisse sued in U.S. over alleged business 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 bunch of individuals 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 related to Russian oligarchs, regulation firm 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 Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz said in an announcement issued late on Friday.

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"The criticism alleges that, throughout the category interval, defendants made materially false and misleading statements relating to the corporate's enterprise, operations, and compliance insurance policies," Pomerantz mentioned within the assertion.

The legislation agency alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Monetary Times story from February by which the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest clients' yachts and private jets, in an uncommon use of derivatives to offload the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Occasions said that after the publication of its article, Credit Suisse mentioned in a press release that the transaction “priced consistent with other vital danger transactions, supplied aggressive investment and hedging phrases for our skilled investor purchasers whereas growing the capital flexibility of the bank.”

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

On March 3, Credit score Suisse said no client data had been erased throughout the bank when it requested traders to destroy paperwork relating to a transaction last November, reacting to a further Monetary 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 document seen by Reuters. read extra

Credit Suisse, which reported a first-quarter loss this week, has been dented by a series of pricey hits and a sequence of legal circumstances that it has described as legacy matters. read more

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Reporting by Paul Carrel Editing by Frances Kerry

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