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

The logo of Swiss bank 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 in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss bank misled traders over business dealings related to Russian oligarchs, regulation agency Pomerantz LLP mentioned.

Credit 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 score 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 category interval, defendants made materially false and deceptive statements concerning the corporate's business, operations, and compliance policies," Pomerantz mentioned in the assertion.

The legislation agency alleged disclosure shortcomings around a securitisation deal. It cited in its assertion a Financial Occasions story from February through which the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest clients' 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 mentioned that after the publication of its article, Credit score Suisse stated in a press release that the transaction “priced in step with different vital danger transactions, supplied aggressive investment and hedging phrases for our skilled investor shoppers while growing the capital flexibility of the financial institution.”

The lawsuit also referred to a request made by U.S. lawmakers in March for Credit Suisse at hand over documents related to the financing of yachts and private jets owned by probably sanctioned people. read extra

On March 3, Credit Suisse stated no consumer information had been erased inside the financial institution when it requested buyers to destroy documents referring to a transaction last November, reacting to an extra Monetary Times report associated to oligarchs.

Credit score Suisse stopped pursuing new enterprise in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank stated on March 28 in an inside doc seen by Reuters. read extra

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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