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

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

Register

April 30 (Reuters) - A bunch of people and entities have filed a category motion lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over enterprise dealings related to Russian oligarchs, legislation firm Pomerantz LLP mentioned.

Credit 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 stated in a statement issued late on Friday.

Register

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

The regulation firm alleged disclosure shortcomings round a securitisation deal. It cited in its statement a Monetary Occasions story from February through 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 Financial Instances stated that after the publication of its article, Credit score Suisse mentioned in a statement that the transaction “priced in step with different significant threat transactions, offered competitive investment and hedging phrases for our professional investor clients while growing the capital flexibility of the financial institution.”

The lawsuit additionally referred to a request made by U.S. lawmakers in March for Credit Suisse handy over documents related to the financing of yachts and personal jets owned by probably sanctioned individuals. learn extra

On March 3, Credit score Suisse mentioned no consumer data had been erased inside the financial institution when it requested buyers to destroy documents referring to a transaction final November, reacting to a further Financial Occasions report related to oligarchs.

Credit score Suisse stopped pursuing new enterprise in Russia after the invasion of Ukraine on Feb. 24, the Swiss financial institution said on March 28 in an internal doc seen by Reuters. read more

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

Register

Reporting by Paul Carrel Enhancing by Frances Kerry

Our Standards: The Thomson Reuters Belief Ideas.