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

The logo of Swiss bank Credit score Suisse is seen at a branch office 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 motion lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over business dealings associated to Russian oligarchs, legislation agency Pomerantz LLP said.

Credit Suisse did not remark when contacted by Reuters.

The lawsuit, filed in a New York district court docket, is on behalf of people 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 grievance alleges that, all through the category interval, defendants made materially false and deceptive statements concerning the corporate's business, operations, and compliance insurance policies," Pomerantz mentioned in the statement.

The regulation agency alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Monetary Instances story from February by which the newspaper reported that Credit score 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 related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Instances said that after the publication of its article, Credit Suisse mentioned in an announcement that the transaction “priced according to other vital risk transactions, supplied competitive funding and hedging terms for our skilled investor shoppers while rising 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 to hand over paperwork related to the financing of yachts and private jets owned by doubtlessly sanctioned people. learn extra

On March 3, Credit Suisse mentioned no shopper knowledge had been erased inside the financial institution when it asked buyers to destroy documents referring to a transaction final November, reacting to an additional Financial Instances report related to oligarchs.

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

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

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Reporting by Paul Carrel Modifying by Frances Kerry

Our Standards: The Thomson Reuters Trust Principles.