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

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

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April 30 (Reuters) - A bunch of people and entities have filed a class action lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over enterprise dealings related to Russian oligarchs, law agency 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 people and entities who acquired Credit score Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz stated in an announcement issued late on Friday.

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"The complaint alleges that, all through the category interval, defendants made materially false and misleading statements concerning the company's business, operations, and compliance insurance policies," Pomerantz said within the statement.

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

The Monetary Occasions said that after the publication of its article, Credit Suisse stated in an announcement that the transaction “priced in line with different important threat transactions, offered competitive funding and hedging terms for our professional investor purchasers while rising the capital flexibility of the bank.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit Suisse handy over documents associated to the financing of yachts and private jets owned by potentially sanctioned individuals. read more

On March 3, Credit Suisse mentioned no consumer data had been erased inside the bank when it requested buyers to destroy documents regarding a transaction last November, reacting to an additional Monetary Times report associated 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 doc seen by Reuters. learn extra

Credit Suisse, which reported a first-quarter loss this week, has been dented by a collection of pricey hits and a sequence of legal circumstances that it has described as legacy issues. learn extra

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Reporting by Paul Carrel Enhancing by Frances Kerry

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