Credit Suisse sued in U.S. over alleged enterprise related 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 Picture

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April 30 (Reuters) - A group of people and entities have filed a category motion lawsuit towards Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled traders over business dealings related to Russian oligarchs, law agency Pomerantz LLP stated.

Credit Suisse didn't comment when contacted by Reuters.

The lawsuit, filed in a New York district court docket, is on behalf of people and entities who acquired Credit score 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, all through the category period, defendants made materially false and misleading statements relating to the company's business, operations, and compliance insurance policies," Pomerantz mentioned in the assertion.

The regulation agency alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Financial Occasions story from February by which the newspaper reported that Credit score Suisse had securitised a portfolio of loans linked to its wealthiest clients' yachts and personal jets, in an uncommon use of derivatives to offload the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Instances mentioned that after the publication of its article, Credit Suisse mentioned in an announcement that the transaction “priced in line with other vital threat transactions, provided competitive investment and hedging terms for our skilled investor purchasers whereas rising the capital flexibility of the bank.”

The lawsuit also referred to a request made by U.S. lawmakers in March for Credit score Suisse handy over documents associated to the financing of yachts and private jets owned by probably sanctioned people. read extra

On March 3, Credit score Suisse mentioned no client knowledge had been erased throughout the bank when it asked buyers to destroy documents relating to a transaction final November, reacting to a further Monetary Instances report related to oligarchs.

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

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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