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

The emblem of Swiss financial institution Credit Suisse is seen at a department 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 towards Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over business dealings related to Russian oligarchs, legislation agency Pomerantz LLP stated.

Credit score 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 score 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 complaint alleges that, throughout the class interval, defendants made materially false and misleading statements concerning the company's enterprise, operations, and compliance insurance policies," Pomerantz mentioned within the statement.

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

The Financial Instances said that after the publication of its article, Credit score Suisse said in an announcement that the transaction “priced in keeping with other important danger transactions, offered competitive investment and hedging terms for our skilled investor purchasers whereas growing the capital flexibility of the bank.”

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 doubtlessly sanctioned individuals. read extra

On March 3, Credit Suisse stated no client knowledge had been erased within the financial institution when it requested buyers to destroy documents regarding a transaction last November, reacting to a further Monetary Times report associated to oligarchs.

Credit Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss financial institution stated on March 28 in an internal document seen by Reuters. learn more

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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