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

The emblem of Swiss financial institution Credit score Suisse is seen at a department office in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Photo

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April 30 (Reuters) - A group of individuals and entities have filed a class action lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss bank misled investors over enterprise dealings related to Russian oligarchs, regulation agency Pomerantz LLP stated.

Credit score Suisse didn't comment when contacted by Reuters.

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

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"The grievance alleges that, all through the category period, defendants made materially false and misleading statements concerning the company's business, operations, and compliance policies," Pomerantz stated within the assertion.

The legislation firm alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Monetary Occasions story from February through which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest clients' yachts and personal jets, in an uncommon use of derivatives to dump the dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Occasions stated that after the publication of its article, Credit score Suisse mentioned in a statement that the transaction “priced consistent with other vital danger transactions, offered aggressive funding and hedging terms for our skilled investor purchasers while growing the capital flexibility of the bank.”

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

On March 3, Credit Suisse said no shopper data had been erased within the financial institution when it requested traders to destroy paperwork referring to a transaction final November, reacting to an extra Monetary Times report associated 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 internal document seen by Reuters. learn more

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

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Reporting by Paul Carrel Enhancing by Frances Kerry

Our Requirements: The Thomson Reuters Trust Ideas.