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

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

Register

April 30 (Reuters) - A group of individuals and entities have filed a category motion lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss bank misled traders over business dealings associated to Russian oligarchs, law agency Pomerantz LLP mentioned.

Credit score Suisse did not remark when contacted by Reuters.

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

Register

"The complaint alleges that, all through the category period, defendants made materially false and deceptive statements concerning the company's enterprise, operations, and compliance insurance policies," Pomerantz stated within the statement.

The law agency alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Monetary Times story from February wherein the newspaper reported that Credit score 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 dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Times said that after the publication of its article, Credit Suisse said in a statement that the transaction “priced in step with other significant danger transactions, offered aggressive investment and hedging phrases for our skilled investor clients whereas increasing the capital flexibility of the bank.”

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

On March 3, Credit Suisse stated no client data had been erased throughout the bank when it asked traders to destroy documents relating to a transaction final November, reacting to an extra 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 internal document seen by Reuters. read extra

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

Register

Reporting by Paul Carrel Modifying by Frances Kerry

Our Requirements: The Thomson Reuters Belief Rules.