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

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

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April 30 (Reuters) - A gaggle of individuals and entities have filed a class motion lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss bank misled buyers over business dealings associated to Russian oligarchs, regulation agency Pomerantz LLP mentioned.

Credit score Suisse did not comment when contacted by Reuters.

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

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"The grievance alleges that, all through the category period, defendants made materially false and deceptive statements concerning the company's business, operations, and compliance policies," Pomerantz stated in the statement.

The regulation agency alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial Instances story from February in which the newspaper reported that Credit 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 associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Occasions mentioned that after the publication of its article, Credit score Suisse stated in a statement that the transaction “priced in keeping with different important threat transactions, provided aggressive funding and hedging phrases for our professional investor shoppers while growing the capital flexibility of the financial institution.”

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

On March 3, Credit Suisse said no consumer information had been erased within the bank when it requested investors to destroy documents referring to a transaction last November, reacting to an additional Monetary Instances report related to oligarchs.

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

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

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Reporting by Paul Carrel Enhancing by Frances Kerry

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