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

The brand of Swiss bank Credit Suisse is seen at a department 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 motion lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over business dealings related to Russian oligarchs, regulation firm Pomerantz LLP said.

Credit score Suisse did not comment when contacted by Reuters.

The lawsuit, filed in a New York district court docket, is on behalf of individuals and entities who acquired Credit Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz said in an announcement issued late on Friday.

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"The complaint alleges that, throughout the category interval, defendants made materially false and misleading statements regarding the corporate's business, operations, and compliance policies," Pomerantz mentioned within the assertion.

The legislation agency alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Financial Instances story from February during 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 associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Instances stated that after the publication of its article, Credit Suisse said in an announcement that the transaction “priced in keeping with other vital threat transactions, provided competitive investment and hedging phrases for our skilled investor purchasers whereas increasing 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 at hand over documents associated to the financing of yachts and personal jets owned by potentially sanctioned individuals. read extra

On March 3, Credit Suisse mentioned no consumer information had been erased throughout the bank when it requested traders to destroy documents referring to a transaction final November, reacting to a further 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 mentioned on March 28 in an inner document seen by Reuters. read extra

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

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Reporting by Paul Carrel Enhancing by Frances Kerry

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