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

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

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April 30 (Reuters) - A bunch of people and entities have filed a category action lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss bank misled traders over business dealings related to Russian oligarchs, regulation firm Pomerantz LLP stated.

Credit Suisse didn't comment when contacted by Reuters.

The lawsuit, filed in a New York district courtroom, is on behalf of individuals 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.

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

The law firm alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial Instances story from February wherein 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 offload the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Instances said that after the publication of its article, Credit score Suisse stated in an announcement that the transaction “priced in keeping with different important threat transactions, provided competitive investment and hedging phrases for our skilled investor shoppers whereas rising the capital flexibility of the bank.”

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

On March 3, Credit Suisse stated no client knowledge had been erased inside the bank when it asked traders to destroy documents referring to a transaction final November, reacting to an extra Financial Times report related to oligarchs.

Credit score 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. learn more

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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