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

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

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April 30 (Reuters) - A gaggle of individuals and entities have filed a category action lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss bank misled buyers over enterprise dealings related to Russian oligarchs, law agency Pomerantz LLP stated.

Credit score Suisse did not comment when contacted by Reuters.

The lawsuit, filed in a New York district courtroom, is on behalf of individuals and entities who acquired Credit score Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz mentioned in an announcement issued late on Friday.

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"The complaint alleges that, all through the class period, defendants made materially false and misleading statements relating to the corporate's business, operations, and compliance insurance policies," Pomerantz stated in the assertion.

The legislation agency alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Financial Times story from February during which the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest customers' yachts and personal jets, in an uncommon use of derivatives to dump the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Occasions mentioned that after the publication of its article, Credit score Suisse mentioned in a statement that the transaction “priced consistent with different vital threat transactions, supplied competitive funding and hedging phrases for our professional investor clients whereas 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 documents associated to the financing of yachts and personal jets owned by potentially sanctioned people. read more

On March 3, Credit Suisse stated no client knowledge had been erased within the financial institution when it asked traders to destroy documents referring to a transaction last November, reacting to a further Financial Times report related 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 doc 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 authorized cases that it has described as legacy issues. learn extra

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Reporting by Paul Carrel Enhancing by Frances Kerry

Our Requirements: The Thomson Reuters Trust Ideas.