Credit Suisse sued in U.S. over alleged enterprise related 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

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

Credit score Suisse did not remark 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 stated in an announcement issued late on Friday.

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"The grievance alleges that, all through the class period, defendants made materially false and misleading statements relating to the corporate's business, operations, and compliance policies," Pomerantz said within the statement.

The legislation firm alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Financial Instances story from February in which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest prospects' yachts and personal jets, in an uncommon use of derivatives to offload the dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Instances said that after the publication of its article, Credit score Suisse stated in a press release that the transaction “priced in line with different important danger transactions, supplied competitive funding and hedging phrases for our skilled investor shoppers 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 handy over paperwork associated to the financing of yachts and personal jets owned by potentially sanctioned individuals. read more

On March 3, Credit Suisse mentioned no client data had been erased throughout the bank when it asked buyers to destroy documents regarding a transaction final November, reacting to a further Financial Times 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 said on March 28 in an inside doc seen by Reuters. read more

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

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Reporting by Paul Carrel Editing by Frances Kerry

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