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

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

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April 30 (Reuters) - A group of individuals and entities have filed a category motion lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss bank misled buyers over enterprise dealings associated to Russian oligarchs, law agency Pomerantz LLP said.

Credit Suisse didn't remark when contacted by Reuters.

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

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"The grievance alleges that, throughout the category interval, defendants made materially false and deceptive statements regarding the corporate's enterprise, operations, and compliance insurance policies," Pomerantz mentioned within the statement.

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

The Financial Instances mentioned that after the publication of its article, Credit Suisse said in a press release that the transaction “priced consistent with other vital risk transactions, supplied aggressive funding and hedging terms for our professional investor shoppers whereas growing the capital flexibility of the financial institution.”

The lawsuit also referred to a request made by U.S. lawmakers in March for Credit Suisse to hand over documents related to the financing of yachts and private jets owned by probably sanctioned individuals. read extra

On March 3, Credit Suisse mentioned no consumer knowledge had been erased throughout the bank when it requested investors to destroy documents referring to a transaction final November, reacting to a further Financial Times 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 inner document seen by Reuters. read more

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

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Reporting by Paul Carrel Editing by Frances Kerry

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