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

The brand of Swiss bank Credit Suisse is seen at a branch office in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Picture

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April 30 (Reuters) - A bunch of individuals and entities have filed a class action lawsuit towards Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over business dealings related to Russian oligarchs, law agency 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 people and entities who acquired Credit Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz said in a statement issued late on Friday.

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"The grievance alleges that, all through the category period, defendants made materially false and deceptive statements relating to the company's business, operations, and compliance policies," Pomerantz said in the assertion.

The regulation firm alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Monetary Instances story from February through which the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest customers' yachts and private jets, in an unusual use of derivatives to offload the dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Instances said that after the publication of its article, Credit score Suisse mentioned in an announcement that the transaction “priced in step with different vital risk transactions, provided aggressive investment and hedging phrases for our professional investor clients while growing the capital flexibility of the financial institution.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit Suisse handy over paperwork associated to the financing of yachts and private jets owned by potentially sanctioned individuals. read extra

On March 3, Credit score Suisse mentioned no client knowledge had been erased inside the bank when it requested investors to destroy paperwork referring to a transaction last November, reacting to an extra Financial Occasions report related to oligarchs.

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

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

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Reporting by Paul Carrel Enhancing by Frances Kerry

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