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

The brand of Swiss bank 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 individuals and entities have filed a category action lawsuit towards Credit Suisse (CSGN.S), alleging that the Swiss bank misled investors over business dealings associated to Russian oligarchs, regulation agency Pomerantz LLP mentioned.

Credit Suisse didn't 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 stated in a statement issued late on Friday.

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"The criticism alleges that, throughout the category period, defendants made materially false and misleading statements concerning the corporate's business, operations, and compliance insurance policies," Pomerantz said in the assertion.

The legislation firm alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Monetary Times story from February wherein the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest customers' yachts and private jets, in an uncommon use of derivatives to dump the dangers associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Instances mentioned that after the publication of its article, Credit Suisse said in an announcement that the transaction “priced in keeping with different significant risk transactions, offered competitive investment and hedging phrases for our skilled investor clients while increasing the capital flexibility of the financial institution.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit score Suisse handy over paperwork related to the financing of yachts and private jets owned by potentially sanctioned individuals. read extra

On March 3, Credit score Suisse mentioned no shopper data had been erased throughout the financial institution when it requested buyers to destroy paperwork referring to a transaction last November, reacting to a further Monetary Occasions report associated to oligarchs.

Credit Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss financial institution mentioned on March 28 in an internal document 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 sequence of legal instances that it has described as legacy issues. read extra

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Reporting by Paul Carrel Editing by Frances Kerry

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