Lawsuit Filed Against Credit Suisse Over Oligarch-Linked Case – Media
The law firm alleged disclosure shortcomings around a securitisation deal, the report said.
Various groups and people have sued Credit Suisse in a claim alleging that the bank misled investors over business dealings related to Russian oligarchs, according to Reuters.
The Zurich-listed bank declined to comment to this news service when contacted on the matter. In recent weeks the bank has set out its position on a number of controversies, such as here.
The lawsuit was filed in a New York district court, according to law firm Pomerantz LLP. It is on behalf of people and entities who acquired Credit Suisse securities between 19 March 2021 and 25 March 2022, Pomerantz is quoted as saying in a statement filed late last week. (This publication has sought the statement from the law firm.)
"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 is quoted as saying.
The law firm alleged disclosure shortcomings around a securitisation deal. It cited in its statement a Financial Times story from February in which the newspaper reported that Credit 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 lawsuit also referred to a request made by US lawmakers in March for Credit Suisse to hand over documents related to the financing of yachts and private jets owned by potentially sanctioned individuals.
In March Credit Suisse detailed its exposures to Russia following President Vladimir Putin’s decision to order a military invasion of Ukraine. A number of other major banks have also itemised their exposures. The latest allegations against Credit Suisse come following earlier claims that Switzerland’s second-largest lender had suffered a “massive leak” supposedly showing that the bank harboured the wealth of clients involved in crimes including torture and money laundering. The Guardian website said details of accounts linked to 30,000 Credit Suisse clients all over the world are contained in the leak, which has unmasked the beneficiaries of more than SFr100 billion ($108.6 billion). Credit Suisse argued that many of the accounts referred to had been closed years ago. More than half were shut before 2015.
The claims about Credit Suisse come as it is trying to move on from losses sustained by the Greensill and Archegos sagas of a year ago.