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

The brand of Swiss financial institution Credit score Suisse is seen at a branch workplace in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Picture

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April 30 (Reuters) - A gaggle 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, legislation firm Pomerantz LLP said.

Credit score Suisse did not comment when contacted by Reuters.

The lawsuit, filed in a New York district court, 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 grievance alleges that, all through the class period, defendants made materially false and misleading statements relating to the company's business, operations, and compliance policies," Pomerantz mentioned in the statement.

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

The Monetary Occasions said that after the publication of its article, Credit score Suisse said in an announcement that the transaction “priced consistent with different vital threat transactions, provided competitive investment and hedging terms for our professional investor shoppers whereas growing the capital flexibility of the bank.”

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

On March 3, Credit Suisse said no consumer knowledge had been erased inside the financial institution when it asked buyers to destroy paperwork referring to a transaction final November, reacting to an additional Financial Instances report associated to oligarchs.

Credit Suisse stopped pursuing new business in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank said on March 28 in an internal doc seen by Reuters. learn more

Credit score Suisse, which reported a first-quarter loss this week, has been dented by a collection of costly hits and a series of legal instances that it has described as legacy matters. learn more

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Reporting by Paul Carrel Editing by Frances Kerry

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