Credit Suisse sued in U.S. over alleged enterprise associated 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

Register

April 30 (Reuters) - A gaggle of individuals and entities have filed a category action lawsuit against Credit score Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over enterprise dealings related to Russian oligarchs, regulation firm Pomerantz LLP mentioned.

Credit Suisse didn't comment when contacted by Reuters.

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

Register

"The grievance alleges that, throughout the category interval, defendants made materially false and misleading statements regarding the company's enterprise, operations, and compliance policies," Pomerantz said in the statement.

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

The Monetary Instances said that after the publication of its article, Credit Suisse mentioned in a press release that the transaction “priced in keeping with different vital threat transactions, offered aggressive investment and hedging terms for our skilled investor purchasers 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 Suisse handy over paperwork associated to the financing of yachts and private jets owned by probably sanctioned people. learn more

On March 3, Credit score Suisse stated no shopper knowledge had been erased within the financial institution when it asked traders to destroy paperwork referring to a transaction last November, reacting to a further Financial Occasions report related 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 doc seen by Reuters. read extra

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a series of costly hits and a sequence of legal cases that it has described as legacy matters. read extra

Register

Reporting by Paul Carrel Editing by Frances Kerry

Our Standards: The Thomson Reuters Trust Principles.