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

The emblem of Swiss bank Credit score 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 in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss bank misled investors over business dealings related to Russian oligarchs, legislation agency Pomerantz LLP stated.

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 mentioned in an announcement issued late on Friday.

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"The criticism alleges that, throughout the category interval, defendants made materially false and misleading statements regarding the company's enterprise, operations, and compliance insurance policies," Pomerantz mentioned within the statement.

The law firm alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Monetary Instances story from February by 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 dump the dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Occasions mentioned that after the publication of its article, Credit Suisse stated in a press release that the transaction “priced in keeping with other significant danger transactions, supplied competitive investment and hedging phrases for our professional investor purchasers while 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 documents related to the financing of yachts and personal jets owned by doubtlessly sanctioned people. learn more

On March 3, Credit Suisse stated no shopper knowledge had been erased inside the bank when it requested investors to destroy documents regarding a transaction final November, reacting to an extra Financial Instances report associated to oligarchs.

Credit 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 inner document seen by Reuters. learn extra

Credit Suisse, which reported a first-quarter loss this week, has been dented by a series of pricey hits and a sequence of legal instances that it has described as legacy matters. read more

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Reporting by Paul Carrel Modifying by Frances Kerry

Our Standards: The Thomson Reuters Trust Principles.