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

The emblem 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 group of individuals and entities have filed a category action lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over business dealings associated to Russian oligarchs, legislation agency Pomerantz LLP stated.

Credit score 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 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 complaint alleges that, throughout the category period, defendants made materially false and deceptive statements relating to the company's business, operations, and compliance policies," Pomerantz mentioned in the assertion.

The law firm alleged disclosure shortcomings around a securitisation deal. It cited in its statement 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 clients' yachts and personal jets, in an unusual use of derivatives to offload the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Times mentioned that after the publication of its article, Credit score Suisse said in a press release that the transaction “priced in step with other significant risk transactions, offered aggressive funding and hedging phrases for our skilled investor purchasers whereas rising the capital flexibility of the bank.”

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

On March 3, Credit score Suisse mentioned no consumer information had been erased inside the financial institution when it asked investors to destroy documents regarding a transaction final November, reacting to an extra Monetary Occasions report associated to oligarchs.

Credit score Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss financial institution said on March 28 in an inner doc seen by Reuters. read extra

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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