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

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

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April 30 (Reuters) - A bunch of individuals and entities have filed a class motion lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over enterprise dealings related to Russian oligarchs, legislation agency Pomerantz LLP said.

Credit Suisse did not comment when contacted by Reuters.

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

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

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

The Financial Instances stated that after the publication of its article, Credit score Suisse stated in a statement that the transaction “priced according to different significant risk transactions, offered competitive investment and hedging phrases for our professional investor clients whereas growing 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 documents associated to the financing of yachts and private jets owned by doubtlessly sanctioned people. read more

On March 3, Credit score Suisse said no shopper knowledge had been erased inside the bank when it requested investors to destroy documents relating to a transaction last November, reacting to a further Financial Times report related to oligarchs.

Credit score Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank mentioned on March 28 in an inner doc seen by Reuters. read 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 cases that it has described as legacy matters. learn more

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Reporting by Paul Carrel Enhancing by Frances Kerry

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