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

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

Register

April 30 (Reuters) - A gaggle of people and entities have filed a category motion lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss bank misled buyers over business dealings related to Russian oligarchs, regulation agency Pomerantz LLP stated.

Credit score Suisse did not comment when contacted by Reuters.

The lawsuit, filed in a New York district courtroom, is on behalf of people and entities who acquired Credit Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz stated in a press release issued late on Friday.

Register

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

The regulation firm alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Financial Occasions story from February wherein 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 offload the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Occasions mentioned that after the publication of its article, Credit Suisse stated in an announcement that the transaction “priced in line with other significant danger transactions, offered aggressive investment and hedging phrases for our professional investor purchasers while growing 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 people. learn more

On March 3, Credit score Suisse mentioned no shopper information had been erased within the financial institution when it requested traders to destroy documents referring to a transaction last November, reacting to an additional Financial Times report related to oligarchs.

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

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

Register

Reporting by Paul Carrel Modifying by Frances Kerry

Our Requirements: The Thomson Reuters Belief Ideas.