Credit Suisse sued in U.S. over alleged business related to oligarchs

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

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April 30 (Reuters) - A group of individuals and entities have filed a class motion lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over business dealings related to Russian oligarchs, legislation firm Pomerantz LLP stated.

Credit Suisse didn't comment when contacted by Reuters.

The lawsuit, filed in a New York district court, is on behalf of individuals 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 grievance alleges that, throughout the category period, defendants made materially false and deceptive statements regarding the corporate's business, operations, and compliance insurance policies," Pomerantz mentioned in the statement.

The legislation firm alleged disclosure shortcomings around a securitisation deal. It cited in its assertion a Monetary 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 dump the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Occasions stated that after the publication of its article, Credit Suisse stated in an announcement that the transaction “priced according to different significant threat transactions, provided aggressive investment and hedging phrases for our professional investor purchasers whereas increasing the capital flexibility of the bank.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit Suisse at hand over documents associated to the financing of yachts and private jets owned by potentially sanctioned people. read extra

On March 3, Credit score Suisse said no client information had been erased inside the bank when it requested investors to destroy documents relating to a transaction final November, reacting to an additional Monetary 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 Suisse, which reported a first-quarter loss this week, has been dented by a series of costly hits and a series of authorized instances that it has described as legacy issues. learn extra

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Reporting by Paul Carrel Modifying by Frances Kerry

Our Standards: The Thomson Reuters Trust Rules.