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

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

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April 30 (Reuters) - A group of individuals and entities have filed a class action lawsuit towards Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over business dealings related to Russian oligarchs, regulation agency Pomerantz LLP stated.

Credit score Suisse didn't comment when contacted by Reuters.

The lawsuit, filed in a New York district court docket, is on behalf of people and entities who acquired Credit Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz mentioned in a statement issued late on Friday.

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"The criticism alleges that, throughout the class period, defendants made materially false and deceptive statements regarding the corporate's business, operations, and compliance insurance policies," Pomerantz stated in the assertion.

The law firm alleged disclosure shortcomings around a securitisation deal. It cited in its assertion a Financial Occasions story from February in which the newspaper reported that Credit 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 dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Times stated that after the publication of its article, Credit score Suisse said in a press release that the transaction “priced in step with different significant threat transactions, supplied aggressive investment and hedging phrases for our professional investor shoppers whereas rising the capital flexibility of the bank.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit Suisse to hand over documents associated to the financing of yachts and personal jets owned by doubtlessly sanctioned people. read extra

On March 3, Credit Suisse stated no shopper knowledge had been erased throughout the bank when it requested investors to destroy documents relating to a transaction last November, reacting to an additional Financial Occasions 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 internal doc seen by Reuters. read extra

Credit score 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 issues. read more

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Reporting by Paul Carrel Modifying by Frances Kerry

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