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

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

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April 30 (Reuters) - A bunch of individuals and entities have filed a class motion lawsuit towards Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over business dealings associated to Russian oligarchs, law agency Pomerantz LLP stated.

Credit score Suisse did not remark 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 stated in a statement issued late on Friday.

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"The complaint alleges that, throughout the class interval, defendants made materially false and misleading statements concerning the company's business, operations, and compliance insurance policies," Pomerantz mentioned in the assertion.

The legislation agency alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial Occasions story from February in 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 unusual use of derivatives to dump the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Times stated that after the publication of its article, Credit score Suisse mentioned in an announcement that the transaction “priced consistent with other vital threat transactions, provided aggressive funding and hedging phrases for our professional investor clients whereas rising the capital flexibility of the financial institution.”

The lawsuit also referred to a request made by U.S. lawmakers in March for Credit Suisse at hand over documents related to the financing of yachts and private jets owned by doubtlessly sanctioned people. read more

On March 3, Credit Suisse stated no shopper data had been erased inside the bank when it requested traders to destroy documents referring to a transaction final November, reacting to a further Financial Instances report associated to oligarchs.

Credit Suisse stopped pursuing new enterprise in Russia after the invasion of Ukraine on Feb. 24, the Swiss financial institution stated on March 28 in an inside 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. learn extra

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Reporting by Paul Carrel Enhancing by Frances Kerry

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