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

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

Credit score Suisse did not comment when contacted by Reuters.

The lawsuit, filed in a New York district court docket, 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, throughout the class interval, defendants made materially false and deceptive statements concerning the corporate's enterprise, operations, and compliance policies," Pomerantz mentioned within the assertion.

The legislation firm alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Monetary Occasions story from February in 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 unusual use of derivatives to dump the dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Times mentioned that after the publication of its article, Credit Suisse stated in a press release that the transaction “priced in line with other important threat transactions, provided aggressive investment and hedging terms for our professional investor purchasers whereas rising the capital flexibility of the financial institution.”

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

On March 3, Credit score Suisse mentioned no client information had been erased within the financial institution when it requested traders to destroy paperwork relating to a transaction last November, reacting to an additional Monetary Times report associated to oligarchs.

Credit Suisse stopped pursuing new enterprise 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 more

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

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Reporting by Paul Carrel Enhancing by Frances Kerry

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