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

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

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April 30 (Reuters) - A bunch of people and entities have filed a class action lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over business dealings associated to Russian oligarchs, legislation firm Pomerantz LLP mentioned.

Credit score 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 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 category period, defendants made materially false and deceptive statements regarding the corporate's enterprise, operations, and compliance insurance policies," Pomerantz said within the assertion.

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

The Financial Times said that after the publication of its article, Credit Suisse stated in a press release that the transaction “priced according to different vital risk transactions, offered competitive funding and hedging phrases for our skilled investor clients whereas increasing the capital flexibility of the financial institution.”

The lawsuit also referred to a request made by U.S. lawmakers in March for Credit Suisse handy over paperwork associated to the financing of yachts and private jets owned by probably sanctioned individuals. read extra

On March 3, Credit score Suisse stated no client data had been erased within the bank when it asked traders to destroy paperwork regarding a transaction final November, reacting to an extra Monetary Occasions report related to oligarchs.

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

Credit Suisse, which reported a first-quarter loss this week, has been dented by a collection of pricey hits and a series of legal 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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