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

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

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

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

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

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

The legislation firm alleged disclosure shortcomings around a securitisation deal. It cited in its assertion a Financial Times story from February wherein 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 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 statement that the transaction “priced consistent with different significant danger transactions, provided competitive investment and hedging terms for our professional investor purchasers whereas increasing the capital flexibility of the financial institution.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit Suisse handy over paperwork related to the financing of yachts and private jets owned by probably sanctioned individuals. read extra

On March 3, Credit score Suisse mentioned no consumer data had been erased throughout the financial institution when it requested traders to destroy documents referring to a transaction last November, reacting to an extra 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 said on March 28 in an internal document seen by Reuters. learn more

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 Modifying by Frances Kerry

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