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

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

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April 30 (Reuters) - A group of individuals and entities have filed a category motion lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss bank misled buyers over enterprise dealings related to Russian oligarchs, regulation firm Pomerantz LLP mentioned.

Credit score Suisse didn't comment when contacted by Reuters.

The lawsuit, filed in a New York district court, 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 class interval, defendants made materially false and misleading statements regarding the company's enterprise, operations, and compliance insurance policies," Pomerantz mentioned in the assertion.

The legislation firm alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Financial Instances 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 unusual use of derivatives to offload the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

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

The lawsuit also referred to a request made by U.S. lawmakers in March for Credit score Suisse handy over documents associated to the financing of yachts and private jets owned by probably sanctioned individuals. learn more

On March 3, Credit score Suisse mentioned no client knowledge had been erased within the bank when it requested investors to destroy documents relating to a transaction final November, reacting to a further Financial Occasions report related to oligarchs.

Credit score Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank stated on March 28 in an internal document seen by Reuters. read extra

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a series of pricey hits and a series of legal 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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