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

The emblem of Swiss financial institution Credit Suisse is seen at a department office in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Photograph

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

Credit Suisse didn't 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 mentioned in an announcement issued late on Friday.

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"The complaint alleges that, throughout the category interval, defendants made materially false and deceptive statements concerning the company's business, operations, and compliance insurance policies," Pomerantz said in the statement.

The law firm alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Monetary Occasions story from February wherein the newspaper reported that Credit 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 risks related to lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Instances stated that after the publication of its article, Credit score Suisse stated in a press release that the transaction “priced in keeping with different vital threat transactions, supplied aggressive investment and hedging phrases for our skilled 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 to hand over documents related to the financing of yachts and private jets owned by doubtlessly sanctioned individuals. read extra

On March 3, Credit Suisse said no consumer data had been erased throughout the financial institution when it asked buyers to destroy paperwork referring to a transaction last November, reacting to a further Monetary Times 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 internal document seen by Reuters. read more

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

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Reporting by Paul Carrel Modifying by Frances Kerry

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