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

The brand of Swiss bank Credit score Suisse is seen at a department workplace 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 motion lawsuit towards Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over enterprise dealings related to Russian oligarchs, regulation agency Pomerantz LLP stated.

Credit score Suisse did not remark 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 said in a statement issued late on Friday.

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"The complaint alleges that, throughout the category interval, defendants made materially false and misleading statements relating to the corporate's business, operations, and compliance policies," Pomerantz said within the statement.

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

The Financial Times said that after the publication of its article, Credit score Suisse stated in an announcement that the transaction “priced in keeping with different significant danger transactions, offered aggressive funding and hedging terms for our skilled investor clients whereas increasing the capital flexibility of the bank.”

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

On March 3, Credit Suisse stated no shopper knowledge had been erased throughout the financial institution when it requested buyers to destroy documents relating to a transaction last November, reacting to an additional Financial 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. learn extra

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

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Reporting by Paul Carrel Modifying by Frances Kerry

Our Standards: The Thomson Reuters Trust Rules.