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

The logo of Swiss financial institution Credit score 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 class motion lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss bank misled buyers over enterprise dealings related to Russian oligarchs, law firm Pomerantz LLP stated.

Credit Suisse did not remark when contacted by Reuters.

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

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"The complaint alleges that, all through the class period, defendants made materially false and misleading statements regarding the company's business, operations, and compliance insurance policies," Pomerantz mentioned in the statement.

The regulation agency alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Monetary Times story from February during which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest customers' yachts and personal jets, in an uncommon use of derivatives to dump the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Occasions mentioned that after the publication of its article, Credit Suisse said in a statement that the transaction “priced consistent with other significant threat transactions, provided competitive investment and hedging terms for our professional investor purchasers whereas 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 to hand over documents related to the financing of yachts and personal jets owned by potentially sanctioned individuals. learn extra

On March 3, Credit Suisse stated no client information had been erased inside the financial institution when it requested buyers to destroy paperwork relating to a transaction last November, reacting to an additional 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 inside doc seen by Reuters. learn more

Credit Suisse, which reported a first-quarter loss this week, has been dented by a series of costly hits and a sequence of legal cases that it has described as legacy matters. learn extra

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Reporting by Paul Carrel Enhancing by Frances Kerry

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