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

The emblem 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 Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over enterprise dealings related to Russian oligarchs, law firm Pomerantz LLP said.

Credit Suisse didn't comment when contacted by Reuters.

The lawsuit, filed in a New York district court, 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, throughout the class period, defendants made materially false and deceptive statements concerning the company's enterprise, operations, and compliance insurance policies," Pomerantz mentioned within the assertion.

The regulation firm alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Monetary Occasions story from February in which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest customers' yachts and private jets, in an uncommon use of derivatives to offload the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Occasions mentioned that after the publication of its article, Credit Suisse mentioned in an announcement that the transaction “priced consistent with other vital risk transactions, provided aggressive 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 paperwork related to the financing of yachts and personal jets owned by doubtlessly sanctioned individuals. learn extra

On March 3, Credit Suisse said no client information had been erased within the financial institution when it requested investors to destroy paperwork referring to a transaction last November, reacting to a further Monetary Times 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 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 series of authorized instances that it has described as legacy issues. learn more

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Reporting by Paul Carrel Editing by Frances Kerry

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