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

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

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April 30 (Reuters) - A bunch of individuals and entities have filed a class action lawsuit towards Credit score Suisse (CSGN.S), alleging that the Swiss bank misled investors over business dealings related to Russian oligarchs, legislation agency Pomerantz LLP said.

Credit score Suisse didn't comment when contacted by Reuters.

The lawsuit, filed in a New York district court, 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 press release issued late on Friday.

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"The criticism alleges that, all through the class period, defendants made materially false and deceptive statements concerning the corporate's enterprise, operations, and compliance insurance policies," Pomerantz stated in the statement.

The regulation firm alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Monetary Times 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 uncommon use of derivatives to offload the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Instances mentioned that after the publication of its article, Credit score Suisse said in a statement that the transaction “priced according to other important threat transactions, supplied aggressive investment and hedging phrases for our professional investor shoppers while rising 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 paperwork related to the financing of yachts and personal jets owned by potentially sanctioned people. read more

On March 3, Credit Suisse said no shopper data had been erased within the bank when it asked buyers to destroy paperwork referring to a transaction final November, reacting to an additional Financial Occasions report associated to oligarchs.

Credit Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank mentioned on March 28 in an internal doc seen by Reuters. learn extra

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a sequence of costly hits and a series of legal instances that it has described as legacy issues. learn more

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Reporting by Paul Carrel Editing by Frances Kerry

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