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

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

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April 30 (Reuters) - A group of people and entities have filed a category motion lawsuit towards Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over enterprise dealings associated to Russian oligarchs, regulation firm Pomerantz LLP stated.

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

The lawsuit, filed in a New York district court docket, is on behalf of individuals 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 concerning the corporate's business, operations, and compliance policies," Pomerantz said in the statement.

The law agency alleged disclosure shortcomings around a securitisation deal. It cited in its assertion a Financial Instances story from February by which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest clients' yachts and private jets, in an uncommon use of derivatives to dump the dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Instances stated that after the publication of its article, Credit Suisse stated in a statement that the transaction “priced according to other significant threat transactions, offered competitive funding and hedging phrases for our skilled investor shoppers while 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 associated to the financing of yachts and private jets owned by doubtlessly sanctioned people. read more

On March 3, Credit score Suisse mentioned no consumer knowledge had been erased within the financial institution when it requested investors to destroy paperwork regarding a transaction final November, reacting to a further Monetary Times report associated to oligarchs.

Credit Suisse stopped pursuing new business 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. read more

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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