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

The logo of Swiss financial institution Credit Suisse is seen at a branch workplace in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Picture

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April 30 (Reuters) - A group of people and entities have filed a category motion lawsuit towards Credit score Suisse (CSGN.S), alleging that the Swiss bank misled traders over enterprise dealings associated to Russian oligarchs, regulation firm Pomerantz LLP mentioned.

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

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

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"The grievance alleges that, all through the category period, defendants made materially false and deceptive statements relating to the company's business, operations, and compliance insurance policies," Pomerantz said within the assertion.

The legislation agency alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Financial Occasions story from February wherein 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 dump the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Occasions mentioned that after the publication of its article, Credit Suisse said in an announcement that the transaction “priced in keeping with other significant threat transactions, offered aggressive funding and hedging phrases for our skilled investor purchasers while growing the capital flexibility of the financial institution.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit Suisse handy over paperwork associated to the financing of yachts and personal jets owned by potentially sanctioned people. learn more

On March 3, Credit Suisse said no consumer data had been erased throughout the financial institution when it requested traders to destroy paperwork referring to a transaction final November, reacting to an additional Monetary Times report associated to oligarchs.

Credit Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank stated on March 28 in an inner doc seen by Reuters. learn extra

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a series of pricey hits and a collection of legal cases 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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