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

The logo of Swiss financial institution Credit Suisse is seen at a department workplace in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Photograph

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April 30 (Reuters) - A group of people and entities have filed a category motion lawsuit towards Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over business dealings associated to Russian oligarchs, legislation firm Pomerantz LLP stated.

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 Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz mentioned in an announcement issued late on Friday.

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"The criticism alleges that, throughout the class period, defendants made materially false and deceptive statements concerning the corporate's business, operations, and compliance policies," Pomerantz mentioned in the statement.

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 score Suisse had securitised a portfolio of loans linked to its wealthiest prospects' yachts and personal jets, in an uncommon use of derivatives to dump the dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Times mentioned that after the publication of its article, Credit Suisse mentioned in a statement that the transaction “priced in keeping with different significant risk transactions, provided competitive investment and hedging terms for our skilled investor purchasers while rising the capital flexibility of the financial institution.”

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

On March 3, Credit Suisse mentioned no client data had been erased inside the bank when it requested traders to destroy documents relating to a transaction final 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 said on March 28 in an internal document seen by Reuters. learn extra

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a collection of expensive hits and a series of authorized circumstances 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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