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

The emblem of Swiss bank Credit score Suisse is seen at a department workplace in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Photo

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April 30 (Reuters) - A bunch of individuals and entities have filed a class motion lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss bank misled buyers over business dealings related 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 courtroom, is on behalf of people and entities who acquired Credit Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz mentioned in a statement issued late on Friday.

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"The criticism alleges that, throughout the category interval, defendants made materially false and deceptive statements regarding the corporate's business, operations, and compliance policies," Pomerantz mentioned in the assertion.

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

The Financial Times stated that after the publication of its article, Credit Suisse said in an announcement that the transaction “priced in step with other important risk transactions, supplied competitive funding and hedging phrases for our professional investor shoppers whereas increasing the capital flexibility of the bank.”

The lawsuit also referred to a request made by U.S. lawmakers in March for Credit score Suisse to hand over documents related to the financing of yachts and personal jets owned by doubtlessly sanctioned individuals. learn more

On March 3, Credit score Suisse said no client data had been erased inside the bank when it requested traders to destroy documents regarding a transaction final November, reacting to an extra Monetary Occasions report associated to oligarchs.

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

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a sequence of costly hits and a collection of legal cases that it has described as legacy issues. learn more

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Reporting by Paul Carrel Editing by Frances Kerry

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