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

The emblem of Swiss financial institution Credit 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 individuals and entities have filed a category motion lawsuit towards Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over enterprise dealings associated to Russian oligarchs, legislation firm 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 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 complaint alleges that, throughout the class period, defendants made materially false and deceptive statements relating to the corporate's enterprise, operations, and compliance insurance policies," Pomerantz said within the statement.

The law firm alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Monetary Times story from February by which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest prospects' yachts and personal jets, in an unusual use of derivatives to dump the dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Instances said that after the publication of its article, Credit Suisse said in an announcement that the transaction “priced according to other significant risk transactions, provided aggressive investment and hedging terms for our skilled investor shoppers whereas increasing the capital flexibility of the bank.”

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

On March 3, Credit score Suisse mentioned no shopper data had been erased inside the bank when it requested investors 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 bank stated on March 28 in an inner document seen by Reuters. read extra

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

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Reporting by Paul Carrel Editing by Frances Kerry

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