Credit score Suisse sued in U.S. over alleged enterprise related to oligarchs

The brand of Swiss bank Credit score 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 bunch of people and entities have filed a class action lawsuit in opposition to Credit Suisse (CSGN.S), alleging that the Swiss financial institution misled buyers over business dealings associated to Russian oligarchs, regulation agency Pomerantz LLP mentioned.

Credit score Suisse didn't remark when contacted by Reuters.

The lawsuit, filed in a New York district court docket, is on behalf of people and entities who acquired Credit score Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz stated in an announcement issued late on Friday.

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

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

The Monetary Times stated that after the publication of its article, Credit Suisse mentioned in a statement that the transaction “priced in step with other important threat transactions, provided aggressive 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 paperwork associated to the financing of yachts and personal jets owned by doubtlessly sanctioned individuals. learn more

On March 3, Credit score Suisse said no client information had been erased within the bank when it asked investors to destroy documents regarding a transaction last November, reacting to an additional Monetary Times report associated to oligarchs.

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

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

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Reporting by Paul Carrel Editing by Frances Kerry

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