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

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

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April 30 (Reuters) - A bunch of people and entities have filed a class motion lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss bank misled buyers over enterprise dealings associated to Russian oligarchs, law firm Pomerantz LLP mentioned.

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 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 period, defendants made materially false and misleading statements relating to the company's business, operations, and compliance policies," Pomerantz stated within the assertion.

The law agency alleged disclosure shortcomings around 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 personal jets, in an unusual use of derivatives to dump the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Instances stated that after the publication of its article, Credit score Suisse said in a statement that the transaction “priced in keeping with different important danger transactions, supplied aggressive investment and hedging phrases for our professional investor clients whereas rising 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 documents associated to the financing of yachts and private jets owned by potentially sanctioned individuals. learn extra

On March 3, Credit score Suisse stated no shopper knowledge had been erased within the financial institution when it requested traders to destroy documents regarding a transaction last November, reacting to an additional Monetary Times report related to oligarchs.

Credit Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss financial institution said on March 28 in an inner document seen by Reuters. read extra

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a collection of pricey hits and a sequence of authorized cases 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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