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

The logo of Swiss financial institution Credit score 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 bunch of people and entities have filed a class action lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over enterprise dealings related to Russian oligarchs, law agency Pomerantz LLP stated.

Credit Suisse did not remark when contacted by Reuters.

The lawsuit, filed in a New York district court docket, is on behalf of people and entities who acquired Credit score Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz mentioned in an announcement issued late on Friday.

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"The complaint alleges that, throughout the class interval, defendants made materially false and misleading statements relating to the corporate's enterprise, operations, and compliance policies," Pomerantz said in the assertion.

The law firm 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 prospects' yachts and personal jets, in an uncommon use of derivatives to dump the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Instances mentioned that after the publication of its article, Credit Suisse stated in a press release that the transaction “priced in step with other significant danger transactions, offered aggressive investment and hedging terms for our skilled investor clients while increasing the capital flexibility of the bank.”

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

On March 3, Credit score Suisse mentioned no client knowledge had been erased within the bank when it requested investors to destroy paperwork relating to a transaction final November, reacting to an extra Financial Instances report associated 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 Suisse, which reported a first-quarter loss this week, has been dented by a collection of expensive hits and a sequence of authorized cases that it has described as legacy matters. read extra

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Reporting by Paul Carrel Editing by Frances Kerry

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