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

The brand of Swiss financial institution Credit Suisse is seen at a branch workplace in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Picture

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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 buyers over business dealings associated 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 stated in a press release issued late on Friday.

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"The grievance alleges that, throughout the class interval, defendants made materially false and misleading statements relating to the corporate's enterprise, operations, and compliance policies," Pomerantz stated within the assertion.

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

The Financial Instances said that after the publication of its article, Credit Suisse stated in a statement that the transaction “priced in line with other significant threat transactions, supplied competitive investment and hedging terms for our skilled investor shoppers while growing the capital flexibility of the financial institution.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit Suisse at hand over paperwork associated to the financing of yachts and private jets owned by probably sanctioned individuals. read more

On March 3, Credit score Suisse mentioned no shopper information had been erased inside the bank when it requested investors to destroy documents relating to a transaction final November, reacting to a further Monetary Occasions report related 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. read extra

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

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Reporting by Paul Carrel Editing by Frances Kerry

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