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 Photo

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April 30 (Reuters) - A group of individuals and entities have filed a class motion lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss bank misled buyers over business dealings related to Russian oligarchs, regulation agency Pomerantz LLP mentioned.

Credit Suisse did not comment when contacted by Reuters.

The lawsuit, filed in a New York district court, 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 criticism alleges that, all through the class period, defendants made materially false and deceptive statements regarding the company's business, operations, and compliance policies," Pomerantz said within the assertion.

The regulation agency alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Monetary Occasions story from February through which the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest prospects' yachts and personal jets, in an unusual use of derivatives to offload the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Occasions said that after the publication of its article, Credit Suisse mentioned in a statement that the transaction “priced in keeping with different vital threat transactions, provided aggressive investment and hedging terms for our professional investor shoppers whereas growing the capital flexibility of the bank.”

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

On March 3, Credit Suisse stated no consumer data had been erased inside the financial institution when it requested buyers to destroy documents referring to a transaction last November, reacting to a further Financial Times report associated to oligarchs.

Credit Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss financial institution stated on March 28 in an internal document seen by Reuters. learn more

Credit Suisse, which reported a first-quarter loss this week, has been dented by a sequence of pricey hits and a sequence of legal circumstances that it has described as legacy matters. read extra

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Reporting by Paul Carrel Modifying by Frances Kerry

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