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

The emblem of Swiss financial institution Credit Suisse is seen at a branch workplace in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Photograph

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April 30 (Reuters) - A bunch of individuals and entities have filed a class action lawsuit towards Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over enterprise dealings associated to Russian oligarchs, law 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 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 grievance alleges that, all through the class interval, defendants made materially false and deceptive statements regarding the corporate's enterprise, operations, and compliance policies," Pomerantz said within the statement.

The legislation firm alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Financial Instances story from February during which the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest prospects' yachts and private jets, in an uncommon use of derivatives to offload the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Instances mentioned that after the publication of its article, Credit score Suisse said in a statement that the transaction “priced in line with other vital threat transactions, supplied competitive investment and hedging terms for our skilled investor clients whereas rising the capital flexibility of the financial institution.”

The lawsuit also referred to a request made by U.S. lawmakers in March for Credit score Suisse handy over documents related to the financing of yachts and private jets owned by probably sanctioned people. read more

On March 3, Credit score Suisse said no client data had been erased inside the financial institution when it asked traders to destroy documents regarding a transaction final November, reacting to a further Monetary Times 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 stated on March 28 in an inside document seen by Reuters. learn more

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

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Reporting by Paul Carrel Editing by Frances Kerry

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