Credit Suisse sued in U.S. over alleged enterprise associated to oligarchs By Reuters

© Reuters. FILE PHOTO: The brand of Swiss financial institution Credit Suisse is seen at a department workplace in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Photo

(Reuters) – A gaggle of individuals and entities have filed a category motion lawsuit in opposition to Credit Suisse (SIX:), alleging that the Swiss financial institution misled buyers over enterprise dealings associated to Russian oligarchs, regulation agency Pomerantz LLP mentioned.

Credit Suisse didn’t remark 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 an announcement issued late on Friday.

“The complaint alleges that, throughout the class period, defendants made materially false and misleading statements regarding the company’s business, operations, and compliance policies,” Pomerantz mentioned within the assertion.

The regulation agency alleged disclosure shortcomings round a securitisation deal. It cited in its assertion a Financial Times story from February during which the newspaper reported that Credit Suisse had securitised a portfolio of loans linked to its wealthiest clients’ yachts and personal jets, in an uncommon use of derivatives to dump the dangers related to lending to ultra-rich oligarchs and entrepreneurs.

The Financial Times mentioned that after the publication of its article, Credit Suisse mentioned in an announcement that the transaction “priced in line with other significant risk transactions, offered competitive investment and hedging terms for our professional investor clients while increasing the capital flexibility of the bank.”

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 probably sanctioned people.

On March 3, Credit Suisse mentioned no shopper knowledge had been erased throughout the financial institution when it requested buyers to destroy paperwork regarding a transaction final November, reacting to an extra Financial Times report associated to oligarchs.

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

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

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