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

The brand of Swiss financial institution Credit Suisse is seen at a branch office in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Picture

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April 30 (Reuters) - A gaggle of people and entities have filed a category action lawsuit towards Credit Suisse (CSGN.S), alleging that the Swiss bank misled traders over business dealings associated to Russian oligarchs, law agency Pomerantz LLP said.

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 stated in a statement issued late on Friday.

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"The grievance alleges that, all through the category interval, defendants made materially false and misleading statements relating to the company's business, operations, and compliance policies," Pomerantz stated in the statement.

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

The Financial Instances stated that after the publication of its article, Credit Suisse stated in an announcement that the transaction “priced in keeping with other vital danger transactions, supplied competitive funding and hedging terms for our skilled investor clients while rising the capital flexibility of the bank.”

The lawsuit also 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 doubtlessly sanctioned individuals. learn extra

On March 3, Credit score Suisse said no shopper information had been erased inside the financial institution when it requested investors to destroy documents referring to a transaction final November, reacting to an additional Monetary Instances report associated to oligarchs.

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

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a collection of pricey hits and a series of authorized cases that it has described as legacy issues. read more

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Reporting by Paul Carrel Editing by Frances Kerry

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