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

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

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April 30 (Reuters) - A bunch of individuals and entities have filed a class action lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss bank misled buyers over enterprise dealings related to Russian oligarchs, regulation agency Pomerantz LLP said.

Credit 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 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 period, defendants made materially false and misleading statements regarding the corporate's business, operations, and compliance policies," Pomerantz mentioned in the assertion.

The regulation agency alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial Occasions story from February during which the newspaper reported that Credit score 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 dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Instances mentioned that after the publication of its article, Credit score Suisse stated in a statement that the transaction “priced in keeping with other important danger transactions, provided competitive funding and hedging terms for our skilled investor clients while rising 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 probably sanctioned people. read more

On March 3, Credit Suisse stated no shopper knowledge had been erased within the financial institution when it asked investors to destroy documents regarding a transaction last November, reacting to a further Monetary Occasions 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. learn extra

Credit Suisse, which reported a first-quarter loss this week, has been dented by a series of expensive hits and a collection of authorized circumstances 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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