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

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

Register

April 30 (Reuters) - A gaggle of people and entities have filed a category action lawsuit towards Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over enterprise dealings associated to Russian oligarchs, law firm Pomerantz LLP stated.

Credit Suisse did not remark when contacted by Reuters.

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

Register

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

The regulation firm alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Monetary Instances story from February through which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest prospects' yachts and private jets, in an uncommon use of derivatives to offload the dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Occasions stated that after the publication of its article, Credit Suisse said in a statement that the transaction “priced consistent with different important danger transactions, supplied aggressive investment and hedging terms for our skilled investor purchasers while rising the capital flexibility of the financial institution.”

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

On March 3, Credit Suisse mentioned no shopper data had been erased throughout the financial institution when it requested traders to destroy paperwork relating to a transaction final November, reacting to an additional Financial Occasions report related to oligarchs.

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

Credit Suisse, which reported a first-quarter loss this week, has been dented by a series of expensive hits and a collection of legal circumstances that it has described as legacy issues. learn more

Register

Reporting by Paul Carrel Editing by Frances Kerry

Our Standards: The Thomson Reuters Trust Rules.