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

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

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April 30 (Reuters) - A gaggle of people and entities have filed a category motion lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss bank misled buyers over enterprise dealings related to Russian oligarchs, regulation agency Pomerantz LLP said.

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 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 grievance alleges that, throughout the class period, defendants made materially false and misleading statements regarding the company's business, operations, and compliance policies," Pomerantz said within the assertion.

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

The Monetary Times said that after the publication of its article, Credit Suisse mentioned in a statement that the transaction “priced in step with other significant danger transactions, provided competitive funding and hedging terms for our skilled investor shoppers while growing the capital flexibility of the bank.”

The lawsuit also 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 private jets owned by doubtlessly sanctioned individuals. learn more

On March 3, Credit score Suisse said no consumer data had been erased within the financial institution when it asked traders to destroy documents referring to a transaction last November, reacting to an extra Monetary Times report related to oligarchs.

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

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

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Reporting by Paul Carrel Editing by Frances Kerry

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