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

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

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April 30 (Reuters) - A gaggle of individuals and entities have filed a category motion lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss bank misled traders over enterprise dealings associated to Russian oligarchs, legislation firm Pomerantz LLP mentioned.

Credit score 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 score Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz mentioned in a press release issued late on Friday.

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"The criticism alleges that, throughout the class period, defendants made materially false and misleading statements concerning the company's business, operations, and compliance policies," Pomerantz said in the statement.

The law firm alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial Occasions 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 Occasions said that after the publication of its article, Credit Suisse stated in a press release that the transaction “priced in keeping with other important danger transactions, offered aggressive investment and hedging phrases for our skilled 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 handy over paperwork related to the financing of yachts and personal jets owned by doubtlessly sanctioned people. learn extra

On March 3, Credit Suisse said no client information had been erased inside the bank when it asked buyers to destroy documents referring to a transaction last November, reacting to an extra Monetary Occasions report related to oligarchs.

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

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a series of costly hits and a collection of authorized instances that it has described as legacy issues. read more

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Reporting by Paul Carrel Modifying by Frances Kerry

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