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

The emblem of Swiss bank Credit Suisse is seen at a department office in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Photo

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April 30 (Reuters) - A bunch of individuals and entities have filed a class action lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss bank misled investors over business dealings related to Russian oligarchs, legislation firm Pomerantz LLP mentioned.

Credit score Suisse didn't remark 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 stated in an announcement issued late on Friday.

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

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

The Monetary Times said that after the publication of its article, Credit Suisse said in a press release that the transaction “priced in keeping with different important danger transactions, provided aggressive funding and hedging terms for our skilled investor clients 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 handy over documents related to the financing of yachts and private jets owned by potentially sanctioned individuals. learn extra

On March 3, Credit Suisse said no client information had been erased within the financial institution when it asked traders to destroy documents referring to a transaction last November, reacting to an additional Monetary Instances report related to oligarchs.

Credit Suisse stopped pursuing new enterprise 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. read more

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

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Reporting by Paul Carrel Enhancing by Frances Kerry

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