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

The logo of Swiss financial institution 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 individuals and entities have filed a class action lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss bank misled buyers over enterprise dealings associated to Russian oligarchs, regulation firm Pomerantz LLP stated.

Credit score Suisse did not comment when contacted by Reuters.

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

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"The grievance alleges that, throughout the class period, defendants made materially false and deceptive statements regarding the company's enterprise, operations, and compliance policies," Pomerantz mentioned in the assertion.

The law firm alleged disclosure shortcomings around a securitisation deal. It cited in its assertion a Monetary Instances story from February during which the newspaper reported that Credit 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 related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Instances said that after the publication of its article, Credit score Suisse mentioned in a statement that the transaction “priced consistent with different important danger transactions, supplied aggressive funding and hedging terms for our skilled investor shoppers while rising the capital flexibility of the financial institution.”

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

On March 3, Credit score Suisse stated no client knowledge had been erased throughout the financial institution when it asked traders to destroy paperwork relating to a transaction final November, reacting to a further Monetary Times report related to oligarchs.

Credit Suisse stopped pursuing new enterprise in Russia after the invasion of Ukraine on Feb. 24, the Swiss financial institution mentioned on March 28 in an inner doc seen by Reuters. learn extra

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a sequence of costly hits and a collection of authorized cases that it has described as legacy issues. read more

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Reporting by Paul Carrel Editing by Frances Kerry

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