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

The logo of Swiss bank Credit Suisse is seen at a branch office in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Picture

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

Credit Suisse did not 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 mentioned in a press release issued late on Friday.

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"The grievance alleges that, all through the class interval, defendants made materially false and misleading statements regarding the company's business, operations, and compliance insurance policies," Pomerantz said in the assertion.

The regulation firm alleged disclosure shortcomings around a securitisation deal. It cited in its statement 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 private jets, in an unusual use of derivatives to offload the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Monetary Times said that after the publication of its article, Credit score Suisse said in a statement that the transaction “priced according to other vital threat transactions, offered aggressive funding and hedging terms for our professional investor purchasers while increasing the capital flexibility of the bank.”

The lawsuit additionally 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 potentially sanctioned individuals. read extra

On March 3, Credit score Suisse stated no shopper knowledge had been erased within the financial institution when it asked investors to destroy documents referring to a transaction last November, reacting to an additional Financial Instances report associated to oligarchs.

Credit Suisse stopped pursuing new enterprise in Russia after the invasion of Ukraine on Feb. 24, the Swiss bank said 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 pricey hits and a series of legal cases that it has described as legacy issues. read extra

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Reporting by Paul Carrel Enhancing by Frances Kerry

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