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

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

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April 30 (Reuters) - A bunch of individuals and entities have filed a category motion lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over enterprise dealings associated to Russian oligarchs, regulation firm Pomerantz LLP mentioned.

Credit Suisse did not remark when contacted by Reuters.

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

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"The criticism alleges that, all through the category period, defendants made materially false and misleading statements relating to the corporate's business, operations, and compliance insurance policies," Pomerantz mentioned in the assertion.

The legislation agency alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Financial Occasions story from February by which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest prospects' yachts and personal jets, in an unusual use of derivatives to offload the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Occasions stated that after the publication of its article, Credit score Suisse mentioned in a statement that the transaction “priced according to different vital threat transactions, offered aggressive investment and hedging phrases for our skilled investor shoppers whereas growing 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 related to the financing of yachts and personal jets owned by probably sanctioned individuals. read more

On March 3, Credit score Suisse said no consumer information had been erased within the bank when it asked traders to destroy documents relating to a transaction last November, reacting to an additional Monetary Occasions report associated to oligarchs.

Credit score Suisse stopped pursuing new enterprise in Russia after the invasion of Ukraine on Feb. 24, the Swiss financial institution mentioned on March 28 in an inner document seen by Reuters. learn more

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

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Reporting by Paul Carrel Editing by Frances Kerry

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