Credit Suisse sued in US over alleged cases linked to oligarchs

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

April 30 (Reuters) – A group of people and entities have filed a class action lawsuit against Credit Suisse , alleging the Swiss bank deceived investors about business dealings related to Russian oligarchs, said the law firm Pomerantz LLP.

Credit Suisse had no comment when contacted by Reuters.

The lawsuit, filed in New York District Court, is on behalf of individuals and entities that acquired Credit Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz said in a statement released Friday evening. .

“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 said in the statement.

The law firm alleged disclosure deficiencies around a securitization agreement. He cited in his statement a Financial Times article from February in which the newspaper reported that Credit Suisse had securitized a portfolio of loans linked to the yachts and private jets of its wealthiest clients, in an unusual use of derivatives to offload the risks associated with lending to ultra-rich oligarchs and entrepreneurs.

The Financial Times said that after its article was published, Credit Suisse said in a statement that the transaction “priced in line with other high-risk transactions, offered competitive investment and hedging terms. to our professional investor clients while increasing the flexibility of the bank’s capital. .”

The lawsuit also referenced a request made by U.S. lawmakers in March for Credit Suisse to turn over documents related to the financing of yachts and private jets belonging to potentially sanctioned individuals. Read more

On March 3, Credit Suisse said that no customer data had been erased within the bank when it asked investors to destroy documents relating to a transaction last November, reacting to another report from the Financial Times concerning the oligarchs.

Credit Suisse stopped pursuing new business in Russia after the February 24 invasion of Ukraine, the Swiss bank said March 28 in an internal document seen by Reuters. Read more

Credit Suisse, which reported a first-quarter loss this week, has been rocked by a series of costly hits and a string of court cases it described as legacy issues. Read more

Reporting by Paul Carrel Editing by Frances Kerry

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