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

The logo of Swiss bank Credit Suisse is seen at a branch office 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 action lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss bank misled investors over business dealings associated to Russian oligarchs, law agency Pomerantz LLP stated.

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

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"The complaint alleges that, all through the category period, defendants made materially false and misleading statements concerning the company's enterprise, operations, and compliance policies," Pomerantz stated within the statement.

The legislation agency alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Monetary Occasions story from February wherein the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest clients' yachts and personal jets, in an uncommon use of derivatives to offload the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Occasions stated that after the publication of its article, Credit score Suisse said in a statement that the transaction “priced consistent with other important threat transactions, supplied competitive funding and hedging phrases for our professional investor shoppers whereas growing the capital flexibility of the bank.”

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

On March 3, Credit Suisse said no shopper knowledge had been erased within the financial institution when it requested traders to destroy paperwork relating to a transaction last November, reacting to an additional Financial Times report associated to oligarchs.

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

Credit Suisse, which reported a first-quarter loss this week, has been dented by a series of pricey hits and a collection of legal cases that it has described as legacy issues. learn extra

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Reporting by Paul Carrel Enhancing by Frances Kerry

Our Standards: The Thomson Reuters Trust Rules.