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

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

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

Credit score Suisse did not remark 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.

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"The complaint alleges that, all through the class interval, defendants made materially false and deceptive statements relating to the company's business, operations, and compliance insurance policies," Pomerantz mentioned within the assertion.

The legislation agency alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial Occasions story from February through which the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest clients' yachts and personal jets, in an uncommon use of derivatives to dump the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Occasions mentioned that after the publication of its article, Credit Suisse mentioned in an announcement that the transaction “priced in step with other important threat transactions, supplied competitive funding and hedging terms for our skilled investor clients whereas growing the capital flexibility of the bank.”

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

On March 3, Credit score Suisse said no consumer data had been erased within the bank when it asked buyers to destroy paperwork regarding a transaction last November, reacting to an additional 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 bank stated on March 28 in an inside doc seen by Reuters. learn more

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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