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 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 motion lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss bank misled buyers over enterprise dealings associated to Russian oligarchs, law firm Pomerantz LLP stated.

Credit Suisse didn't comment when contacted by Reuters.

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

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

The legislation firm alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Financial Instances story from February wherein the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest prospects' yachts and private jets, in an unusual use of derivatives to dump the dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Instances stated that after the publication of its article, Credit Suisse mentioned in a press release that the transaction “priced according to different significant danger transactions, supplied aggressive investment and hedging terms for our professional 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 score Suisse handy over paperwork related to the financing of yachts and personal jets owned by doubtlessly sanctioned individuals. read more

On March 3, Credit score Suisse said no consumer knowledge had been erased within the bank when it asked investors to destroy documents regarding a transaction final November, reacting to a further Monetary Instances report associated to oligarchs.

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

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a collection of pricey hits and a series of authorized cases that it has described as legacy matters. read extra

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Reporting by Paul Carrel Modifying by Frances Kerry

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