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

The brand of Swiss bank 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 people and entities have filed a class action lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled investors over enterprise dealings associated to Russian oligarchs, law firm Pomerantz LLP mentioned.

Credit Suisse did not comment 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 complaint alleges that, all through the class period, defendants made materially false and deceptive statements relating to the corporate's enterprise, operations, and compliance policies," Pomerantz said within the assertion.

The regulation agency alleged disclosure shortcomings around a securitisation deal. It cited in its assertion a Monetary Occasions story from February through 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 dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Times mentioned that after the publication of its article, Credit Suisse said in a statement that the transaction “priced in line with other significant danger transactions, supplied aggressive funding and hedging phrases for our professional investor purchasers while 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 personal jets owned by doubtlessly sanctioned people. read extra

On March 3, Credit score Suisse stated no shopper data had been erased inside the financial institution when it asked traders to destroy paperwork regarding a transaction last November, reacting to an extra Financial Occasions report associated to oligarchs.

Credit Suisse stopped pursuing new enterprise in Russia after the invasion of Ukraine on Feb. 24, the Swiss financial institution said on March 28 in an internal document seen by Reuters. read more

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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