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

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

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April 30 (Reuters) - A gaggle of people and entities have filed a class motion lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over business dealings related to Russian oligarchs, regulation agency Pomerantz LLP stated.

Credit score Suisse didn't remark when contacted by Reuters.

The lawsuit, filed in a New York district courtroom, is on behalf of individuals and entities who acquired Credit Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz said in an announcement issued late on Friday.

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"The complaint alleges that, throughout the category period, defendants made materially false and deceptive statements relating to the company's enterprise, operations, and compliance policies," Pomerantz said in the assertion.

The legislation firm alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Monetary Times story from February by which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest customers' yachts and private jets, in an uncommon use of derivatives to offload the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Instances mentioned that after the publication of its article, Credit Suisse mentioned in a statement that the transaction “priced in line with other significant danger transactions, supplied aggressive funding and hedging phrases for our professional investor clients while increasing the capital flexibility of the bank.”

The lawsuit also referred to a request made by U.S. lawmakers in March for Credit Suisse to hand over paperwork associated to the financing of yachts and private jets owned by probably sanctioned individuals. learn extra

On March 3, Credit Suisse stated no shopper knowledge had been erased throughout the bank when it asked investors to destroy paperwork regarding a transaction last November, reacting to a further 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 internal doc seen by Reuters. learn more

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a collection of expensive hits and a sequence of legal instances that it has described as legacy matters. learn extra

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Reporting by Paul Carrel Editing by Frances Kerry

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