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

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

Register

April 30 (Reuters) - A gaggle of people and entities have filed a class action lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over business dealings associated to Russian oligarchs, legislation firm Pomerantz LLP stated.

Credit Suisse didn't remark when contacted by Reuters.

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

Register

"The complaint alleges that, throughout the category period, defendants made materially false and deceptive statements regarding the corporate's business, operations, and compliance policies," Pomerantz stated within the statement.

The regulation firm alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial Times story from February during which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest prospects' yachts and personal jets, in an unusual use of derivatives to offload the dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Times stated that after the publication of its article, Credit Suisse mentioned in a statement that the transaction “priced in line with other important risk transactions, supplied aggressive funding and hedging terms for our skilled investor clients while rising 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 documents associated to the financing of yachts and personal jets owned by probably sanctioned individuals. read more

On March 3, Credit score Suisse said no shopper knowledge had been erased inside the bank when it requested buyers to destroy paperwork referring to a transaction last November, reacting to an additional 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 mentioned on March 28 in an inside document 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 series of authorized instances that it has described as legacy matters. read extra

Register

Reporting by Paul Carrel Editing by Frances Kerry

Our Standards: The Thomson Reuters Trust Rules.