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

A group of individuals and entities have filed a class-action lawsuit against Credit Suisse (SIX: CSGN), alleging the Swiss bank misled investors over business dealings related to Russian oligarchs, law firm Pomerantz LLP has said.

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 was “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.

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 on March 28 in an internal document seen by Reuters.