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

The brand of Swiss financial institution 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 class action lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss bank misled investors over enterprise dealings related to Russian oligarchs, law agency Pomerantz LLP mentioned.

Credit score Suisse did not comment when contacted by Reuters.

The lawsuit, filed in a New York district court docket, is on behalf of individuals and entities who acquired Credit 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 grievance alleges that, all through the class interval, defendants made materially false and deceptive statements concerning the company's enterprise, operations, and compliance policies," Pomerantz stated within the statement.

The law agency alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Financial Occasions 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 unusual use of derivatives to dump the dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Times mentioned that after the publication of its article, Credit Suisse mentioned in a statement that the transaction “priced in line with other vital danger transactions, offered aggressive funding and hedging phrases for our professional investor shoppers whereas increasing the capital flexibility of the financial institution.”

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

On March 3, Credit Suisse mentioned no shopper information had been erased within the bank when it asked traders to destroy paperwork referring to a transaction final November, reacting to an extra Monetary Times report associated 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 inner doc seen by Reuters. read extra

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

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Reporting by Paul Carrel Editing by Frances Kerry

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