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

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

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April 30 (Reuters) - A group of people and entities have filed a category action lawsuit against Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over enterprise dealings related to Russian oligarchs, law firm Pomerantz LLP stated.

Credit score Suisse did not comment when contacted by Reuters.

The lawsuit, filed in a New York district courtroom, 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.

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"The complaint alleges that, all through the category period, defendants made materially false and misleading statements regarding the corporate's enterprise, operations, and compliance policies," Pomerantz said within the assertion.

The legislation firm alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial Occasions story from February by which 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 Times mentioned that after the publication of its article, Credit Suisse mentioned in an announcement that the transaction “priced in line with different important threat transactions, offered competitive investment and hedging phrases for our skilled investor shoppers whereas rising the capital flexibility of the bank.”

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

On March 3, Credit Suisse stated no consumer information had been erased within the financial institution when it requested traders to destroy documents referring to a transaction final November, reacting to an extra Monetary Instances report associated to oligarchs.

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

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

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Reporting by Paul Carrel Editing by Frances Kerry

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