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

The brand of Swiss bank Credit score Suisse is seen at a branch 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 category action lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss bank misled traders over enterprise dealings related to Russian oligarchs, legislation agency Pomerantz LLP said.

Credit Suisse didn't remark 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 an announcement issued late on Friday.

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

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

The Monetary Occasions 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 competitive investment and hedging terms for our professional investor purchasers whereas rising 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 paperwork related to the financing of yachts and personal jets owned by probably sanctioned people. read more

On March 3, Credit Suisse mentioned no shopper information had been erased within the bank when it asked traders to destroy documents regarding a transaction final November, reacting to an additional Monetary Occasions report related to oligarchs.

Credit score 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 inside doc seen by Reuters. learn more

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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