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

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

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April 30 (Reuters) - A bunch of individuals and entities have filed a category motion lawsuit towards Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over enterprise dealings associated to Russian oligarchs, legislation agency Pomerantz LLP stated.

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 score Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz mentioned in a press release issued late on Friday.

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"The complaint alleges that, throughout the category period, defendants made materially false and misleading statements regarding the company's business, operations, and compliance policies," Pomerantz said within the statement.

The regulation agency alleged disclosure shortcomings around a securitisation deal. It cited in its assertion a Monetary Instances story from February during which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest prospects' yachts and personal jets, in an unusual use of derivatives to dump the dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Instances said that after the publication of its article, Credit score Suisse stated in a press release that the transaction “priced in line with other vital threat transactions, provided aggressive funding and hedging terms for our skilled investor clients while increasing the capital flexibility of the bank.”

The lawsuit also referred to a request made by U.S. lawmakers in March for Credit Suisse to hand over documents related to the financing of yachts and private jets owned by doubtlessly sanctioned people. learn extra

On March 3, Credit score Suisse mentioned no shopper data had been erased inside the bank when it requested buyers to destroy documents regarding a transaction last November, reacting to an additional Monetary Times report related to oligarchs.

Credit Suisse stopped pursuing new enterprise in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank stated on March 28 in an inner doc seen by Reuters. read more

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

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Reporting by Paul Carrel Editing by Frances Kerry

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