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

The brand of Swiss financial institution Credit Suisse is seen at a department workplace 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 towards Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over business dealings associated to Russian oligarchs, legislation agency Pomerantz LLP mentioned.

Credit score Suisse did not comment 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 press release issued late on Friday.

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"The criticism alleges that, throughout the class period, defendants made materially false and misleading statements relating to the company's enterprise, operations, and compliance policies," Pomerantz said in the assertion.

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

The Financial Instances said that after the publication of its article, Credit Suisse said in an announcement that the transaction “priced in keeping with other vital risk transactions, offered competitive funding and hedging terms for our skilled investor clients while increasing the capital flexibility of the financial institution.”

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

On March 3, Credit score Suisse mentioned no client information had been erased within the financial institution when it requested buyers to destroy paperwork relating to a transaction final November, reacting to an extra Financial Times report related to oligarchs.

Credit Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank stated on March 28 in an internal doc seen by Reuters. learn more

Credit Suisse, which reported a first-quarter loss this week, has been dented by a collection of expensive hits and a sequence of legal instances that it has described as legacy issues. read extra

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Reporting by Paul Carrel Editing by Frances Kerry

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