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

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

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April 30 (Reuters) - A bunch of people and entities have filed a category action lawsuit towards Credit score Suisse (CSGN.S), alleging that the Swiss bank misled traders over enterprise dealings associated to Russian oligarchs, legislation agency Pomerantz LLP said.

Credit Suisse did not 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 score Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz mentioned in a statement issued late on Friday.

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"The complaint alleges that, all through the category period, defendants made materially false and deceptive statements regarding the corporate's business, operations, and compliance policies," Pomerantz mentioned within the statement.

The regulation firm alleged disclosure shortcomings round 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 prospects' yachts and personal jets, in an uncommon use of derivatives to dump the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Instances stated that after the publication of its article, Credit score Suisse stated in an announcement that the transaction “priced consistent with other significant risk transactions, supplied competitive funding and hedging phrases for our skilled investor clients while increasing the capital flexibility of the bank.”

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

On March 3, Credit Suisse mentioned no consumer knowledge had been erased inside the bank when it requested traders to destroy documents referring to a transaction last November, reacting to an extra Monetary Times report associated to oligarchs.

Credit Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank said on March 28 in an internal doc seen by Reuters. learn extra

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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