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 Photo

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April 30 (Reuters) - A bunch of people and entities have filed a class motion lawsuit towards Credit score Suisse (CSGN.S), alleging that the Swiss bank misled investors over business dealings associated to Russian oligarchs, regulation firm Pomerantz LLP said.

Credit Suisse didn't remark 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 stated in a statement issued late on Friday.

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"The complaint alleges that, throughout the category period, defendants made materially false and misleading statements concerning the corporate's enterprise, operations, and compliance policies," Pomerantz stated within the assertion.

The regulation firm alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial Times story from February wherein 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 offload the dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Times mentioned that after the publication of its article, Credit score Suisse mentioned in a press release that the transaction “priced in step with different significant threat transactions, supplied aggressive investment and hedging phrases for our professional investor clients while increasing 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 to hand over paperwork associated to the financing of yachts and personal jets owned by doubtlessly sanctioned individuals. read extra

On March 3, Credit score Suisse mentioned no shopper information had been erased inside the financial institution when it requested buyers to destroy paperwork referring to a transaction final November, reacting to a further Financial Instances report associated to oligarchs.

Credit 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. read extra

Credit score 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 matters. learn extra

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Reporting by Paul Carrel Enhancing by Frances Kerry

Our Requirements: The Thomson Reuters Trust Rules.