Credit Suisse Sued Over Claims It Misled on Deals With Oligarchs

• Pomerantz law firm announced it filed a class-action lawsuit against Credit Suisse on Friday.
• The suit claims the Swiss bank has a history of business dealings with Russian oligarchs. 
• The law firm also accuses the bank of releasing false and misleading public statements.

A New York City law firm has filed a class-action lawsuit against Credit Suisse over claims the bank has misled investors over its business relations with Russian oligarchs. 

Pomerantz, who filed the suit on Friday on behalf of a group of people and entities who acquired securities between March 2021 and March 2022, said in their statement: “The complaint alleges that, throughout the class period, defendants made materially false and misleading statements regarding the company’s business, operations, and compliance policies.”

In February, the Financial Times reported that Credit Suisse had securitized a portfolio of loans linked to wealthiest customers’ yachts and private jets, “in an unusual use of derivatives to offload risks associated with lending to ultra-rich oligarchs and entrepreneurs,” the report said.

Credit Suisse declined Insider’s request for comment.

The company said in a statement to the FT after the newspaper published the article 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 suit pointed to US lawmakers requesting documents from Credit Suisse related to the financing of yachts and private jets owned by the bank’s clients – potentially sanctioned oligarchs.  

Another report by the FT said the bank asked investors to destroy documents linked to oligarch and tycoon yacht loans, to which Credit Suisse responded that no data, client-related or otherwise, had been erased within the bank when it asked investors to destroy documents relating to a transaction last November.

Pomerantz did not immediately respond to Insider’s request for comment outside of normal working hours

Russian oligarchs have been hit by Western sanctions amid Russia’s invasion of Ukraine, leading to their most precious assets being seized – superyachts, properties, private jets, or even art. 

Meanwhile, President Joe Biden unveiled a new plan last Thursday that would sell Russian oligarchs’ houses and yachts to help Ukraine, and fund the country’s defense.