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

The logo of Swiss financial institution Credit Suisse is seen at a department office in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Picture

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April 30 (Reuters) - A gaggle of individuals and entities have filed a category action lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over enterprise dealings associated to Russian oligarchs, regulation agency Pomerantz LLP stated.

Credit Suisse did not 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, all through the category period, defendants made materially false and misleading statements concerning the company's business, operations, and compliance insurance policies," Pomerantz said in the statement.

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

The Financial Occasions stated that after the publication of its article, Credit score Suisse mentioned in a statement that the transaction “priced consistent with other important danger transactions, provided competitive funding and hedging terms for our skilled investor clients 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 to hand over paperwork associated to the financing of yachts and private jets owned by probably sanctioned individuals. learn more

On March 3, Credit score Suisse said no shopper information had been erased inside the financial institution when it asked traders to destroy documents regarding a transaction last November, reacting to an extra Financial Occasions report related to oligarchs.

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

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

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Reporting by Paul Carrel Editing by Frances Kerry

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