Credit Suisse sued in U.S. over alleged business 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 Photo

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

Credit 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 score Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz mentioned in a statement issued late on Friday.

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"The criticism alleges that, throughout the category interval, defendants made materially false and deceptive statements relating to the corporate's enterprise, operations, and compliance policies," Pomerantz said within the statement.

The legislation agency alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Monetary Times story from February during which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest clients' yachts and private jets, in an unusual use of derivatives to offload the risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Instances said that after the publication of its article, Credit Suisse mentioned in an announcement that the transaction “priced according to different significant threat transactions, supplied competitive funding and hedging phrases for our professional investor purchasers while increasing the capital flexibility of the bank.”

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

On March 3, Credit score Suisse stated no shopper information had been erased within the bank when it asked traders to destroy documents regarding a transaction last November, reacting to an extra Monetary Instances report associated to oligarchs.

Credit Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss financial institution 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 sequence of expensive hits and a sequence of authorized instances that it has described as legacy issues. read extra

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Reporting by Paul Carrel Modifying by Frances Kerry

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