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

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

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April 30 (Reuters) - A gaggle of people and entities have filed a category motion lawsuit in opposition to Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over enterprise dealings related to Russian oligarchs, legislation firm Pomerantz LLP said.

Credit score Suisse didn't remark when contacted by Reuters.

The lawsuit, filed in a New York district court docket, is on behalf of people and entities who acquired Credit Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz said in an announcement issued late on Friday.

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"The complaint alleges that, throughout the class interval, defendants made materially false and misleading statements concerning the company's enterprise, operations, and compliance insurance policies," Pomerantz mentioned within the statement.

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

The Monetary Times mentioned that after the publication of its article, Credit Suisse mentioned in an announcement that the transaction “priced in step with other significant danger transactions, offered competitive investment and hedging phrases for our skilled investor shoppers while increasing the capital flexibility of the financial institution.”

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

On March 3, Credit Suisse mentioned no shopper information had been erased throughout the bank when it requested traders to destroy documents referring to a transaction last November, reacting to a further Monetary Occasions report related to oligarchs.

Credit 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 internal doc seen by Reuters. learn more

Credit Suisse, which reported a first-quarter loss this week, has been dented by a sequence of pricey hits and a sequence of legal instances that it has described as legacy issues. learn extra

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Reporting by Paul Carrel Enhancing by Frances Kerry

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