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

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

Register

April 30 (Reuters) - A gaggle of people and entities have filed a class action lawsuit towards Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over enterprise dealings related to Russian oligarchs, regulation firm Pomerantz LLP stated.

Credit score Suisse did not comment when contacted by Reuters.

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

Register

"The grievance alleges that, throughout the category period, defendants made materially false and misleading statements regarding the company's enterprise, operations, and compliance insurance policies," Pomerantz mentioned within the statement.

The legislation agency alleged disclosure shortcomings around a securitisation deal. It cited in its assertion 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 prospects' yachts and private jets, in an unusual use of derivatives to offload the dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Times mentioned that after the publication of its article, Credit score Suisse mentioned in a press release that the transaction “priced in step with other important risk transactions, provided aggressive funding and hedging terms for our skilled investor clients whereas increasing the capital flexibility of the bank.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit Suisse to hand over paperwork associated to the financing of yachts and personal jets owned by doubtlessly sanctioned individuals. read more

On March 3, Credit Suisse mentioned no client knowledge had been erased within the financial institution when it asked investors to destroy documents regarding a transaction final November, reacting to an extra Financial Instances report related to oligarchs.

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

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

Register

Reporting by Paul Carrel Modifying by Frances Kerry

Our Standards: The Thomson Reuters Trust Principles.