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

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

Register

April 30 (Reuters) - A bunch of individuals and entities have filed a category action lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over enterprise dealings related to Russian oligarchs, legislation agency Pomerantz LLP mentioned.

Credit score Suisse did not comment when contacted by Reuters.

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

Register

"The complaint alleges that, all through the class interval, defendants made materially false and deceptive statements relating to the corporate's enterprise, operations, and compliance insurance policies," Pomerantz mentioned within the assertion.

The law agency alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Financial Occasions story from February wherein the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest clients' yachts and personal jets, in an unusual use of derivatives to dump the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Instances stated that after the publication of its article, Credit score Suisse stated in a press release that the transaction “priced in line with other significant danger transactions, offered aggressive funding and hedging phrases for our professional investor clients while growing the capital flexibility of the bank.”

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

On March 3, Credit Suisse stated no consumer information had been erased within the financial institution when it requested investors to destroy documents relating to a transaction last November, reacting to an additional Monetary Occasions report associated to oligarchs.

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

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

Register

Reporting by Paul Carrel Modifying by Frances Kerry

Our Requirements: The Thomson Reuters Trust Rules.