Credit score Suisse sued in U.S. over alleged business associated 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 Picture

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April 30 (Reuters) - A group of people and entities have filed a class motion lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over business dealings associated to Russian oligarchs, law firm Pomerantz LLP said.

Credit Suisse didn't comment when contacted by Reuters.

The lawsuit, filed in a New York district court docket, is on behalf of people 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 criticism alleges that, throughout the category interval, defendants made materially false and deceptive statements concerning the company's enterprise, operations, and compliance insurance policies," Pomerantz stated within the assertion.

The law firm alleged disclosure shortcomings around a securitisation deal. It cited in its assertion a Monetary Occasions story from February during which 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 offload the dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Times mentioned that after the publication of its article, Credit Suisse stated in a press release that the transaction “priced in step with other important threat transactions, provided aggressive investment and hedging phrases for our professional investor clients 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 associated to the financing of yachts and personal jets owned by probably sanctioned people. learn more

On March 3, Credit score Suisse said no client information had been erased throughout the financial institution when it requested traders to destroy documents relating to a transaction last November, reacting to a further Monetary Occasions 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. read extra

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

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Reporting by Paul Carrel Enhancing by Frances Kerry

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