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

The logo of Swiss bank Credit 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 people and entities have filed a category action lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over enterprise dealings related to Russian oligarchs, law agency Pomerantz LLP stated.

Credit 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 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, all through the category interval, defendants made materially false and deceptive statements regarding the corporate's enterprise, operations, and compliance policies," Pomerantz said in the assertion.

The regulation firm alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial Instances 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 private jets, in an uncommon use of derivatives to offload the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Occasions mentioned that after the publication of its article, Credit Suisse said in an announcement that the transaction “priced in step with different significant danger transactions, provided aggressive investment and hedging terms for our professional investor purchasers whereas growing 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 to hand over documents related to the financing of yachts and private jets owned by doubtlessly sanctioned individuals. learn extra

On March 3, Credit Suisse mentioned no consumer information had been erased inside the financial institution when it requested buyers to destroy documents referring to a transaction final November, reacting to a further Financial Times report related to oligarchs.

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

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

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Reporting by Paul Carrel Editing by Frances Kerry

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