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

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

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April 30 (Reuters) - A bunch of people and entities have filed a category motion lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss bank misled traders over business dealings associated to Russian oligarchs, law firm Pomerantz LLP said.

Credit Suisse did not comment 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 an announcement issued late on Friday.

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"The grievance alleges that, all through the class period, defendants made materially false and misleading statements regarding the corporate's business, operations, and compliance insurance policies," Pomerantz mentioned in the statement.

The regulation agency alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Monetary Times story from February through which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest clients' yachts and personal jets, in an unusual use of derivatives to offload the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Times said that after the publication of its article, Credit Suisse mentioned in a press release that the transaction “priced in line with different significant threat transactions, supplied competitive funding and hedging phrases for our skilled investor clients whereas growing the capital flexibility of the bank.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit score Suisse at hand over paperwork related to the financing of yachts and private jets owned by potentially sanctioned people. learn more

On March 3, Credit score Suisse stated no shopper information had been erased inside the bank when it asked buyers 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 doc 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 sequence 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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