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

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

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April 30 (Reuters) - A gaggle of people and entities have filed a category motion lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss bank misled investors over enterprise dealings associated to Russian oligarchs, legislation agency Pomerantz LLP said.

Credit score Suisse did not comment when contacted by Reuters.

The lawsuit, filed in a New York district courtroom, is on behalf of people and entities who acquired Credit score Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz stated in a press release 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 company's enterprise, operations, and compliance insurance policies," Pomerantz said in the assertion.

The regulation agency alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Financial Times story from February during 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 related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Occasions said that after the publication of its article, Credit score Suisse said in a statement that the transaction “priced in step with different significant threat transactions, offered competitive funding and hedging phrases for our professional investor clients while growing the capital flexibility of the financial institution.”

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

On March 3, Credit Suisse mentioned no consumer knowledge had been erased throughout the financial institution when it asked buyers to destroy documents referring to a transaction last 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 document seen by Reuters. learn extra

Credit Suisse, which reported a first-quarter loss this week, has been dented by a series of expensive hits and a series of authorized instances that it has described as legacy issues. read extra

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Reporting by Paul Carrel Editing by Frances Kerry

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