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

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

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April 30 (Reuters) - A gaggle of individuals and entities have filed a class motion lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss bank misled traders over business dealings related to Russian oligarchs, regulation firm Pomerantz LLP stated.

Credit score Suisse did not remark when contacted by Reuters.

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

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"The complaint alleges that, all through the class period, defendants made materially false and misleading statements relating to the corporate's enterprise, operations, and compliance policies," Pomerantz mentioned within the statement.

The legislation firm alleged disclosure shortcomings around a securitisation deal. It cited in its assertion a Financial Instances story from February through which the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest customers' yachts and private jets, in an uncommon use of derivatives to offload the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Instances stated that after the publication of its article, Credit Suisse stated in an announcement that the transaction “priced in step with other important risk transactions, supplied competitive investment and hedging phrases for our skilled investor purchasers 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 score Suisse to hand over documents related to the financing of yachts and personal jets owned by probably sanctioned individuals. learn extra

On March 3, Credit Suisse stated no client knowledge had been erased within the financial institution when it requested buyers to destroy documents relating to a transaction final November, reacting to a further Financial Times report related to oligarchs.

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

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

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Reporting by Paul Carrel Enhancing by Frances Kerry

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