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

The emblem of Swiss financial institution Credit Suisse is seen at a branch office 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 in opposition to Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over business dealings related to Russian oligarchs, regulation agency Pomerantz LLP mentioned.

Credit score Suisse did not remark 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 a statement issued late on Friday.

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

The law agency alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Monetary Instances story from February through which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest prospects' yachts and personal jets, in an uncommon use of derivatives to offload the dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Instances stated that after the publication of its article, Credit Suisse said in a statement that the transaction “priced in keeping with other vital threat transactions, supplied competitive investment and hedging terms 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 at hand over paperwork related to the financing of yachts and private jets owned by probably sanctioned individuals. read more

On March 3, Credit Suisse said no consumer information had been erased throughout the bank when it requested traders to destroy documents relating to a transaction last November, reacting to an additional Financial Instances report associated to oligarchs.

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

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

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Reporting by Paul Carrel Editing by Frances Kerry

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