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

The brand of Swiss bank Credit Suisse is seen at a department office 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 action lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss bank misled buyers over business dealings associated to Russian oligarchs, law agency Pomerantz LLP stated.

Credit 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 said in an announcement 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 company's business, operations, and compliance insurance policies," Pomerantz mentioned in the statement.

The law agency alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Monetary Instances story from February through which the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest customers' yachts and private jets, in an unusual use of derivatives to offload the dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Occasions mentioned that after the publication of its article, Credit Suisse said in a statement that the transaction “priced consistent with other significant threat transactions, offered aggressive funding and hedging terms for our skilled investor purchasers 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 at hand over documents related to the financing of yachts and personal jets owned by probably sanctioned people. learn more

On March 3, Credit Suisse said no consumer information had been erased inside the bank when it asked buyers to destroy paperwork regarding a transaction last November, reacting to a further Financial Times report related to oligarchs.

Credit Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank mentioned on March 28 in an inner doc seen by Reuters. learn more

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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