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

The emblem of Swiss bank Credit score 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 gaggle of individuals and entities have filed a category motion lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss bank misled traders over business dealings related to Russian oligarchs, law firm Pomerantz LLP stated.

Credit score Suisse did not comment when contacted by Reuters.

The lawsuit, filed in a New York district court, is on behalf of individuals and entities who acquired Credit score Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz said in a press release issued late on Friday.

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"The complaint alleges that, throughout the category interval, defendants made materially false and deceptive statements concerning the corporate's enterprise, operations, and compliance policies," Pomerantz mentioned within the statement.

The legislation firm alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Monetary Times 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 dump the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Times stated that after the publication of its article, Credit Suisse stated in an announcement that the transaction “priced in line with other significant danger transactions, offered competitive investment and hedging phrases for our professional 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 score Suisse to hand over documents related to the financing of yachts and private jets owned by doubtlessly sanctioned individuals. read extra

On March 3, Credit score Suisse stated no client knowledge had been erased inside the financial institution when it asked buyers to destroy paperwork referring to a transaction last November, reacting to a further Financial Instances report associated to oligarchs.

Credit Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank said 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 series of pricey hits and a collection of legal instances that it has described as legacy matters. learn more

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Reporting by Paul Carrel Modifying by Frances Kerry

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