Judge Dismisses $24 Billion Lawsuit Against Credit Suisse
29 July 2016 - 7:26AM
Dow Jones News
By Patrick Fitzgerald
A federal judge has dismissed a $24 billion lawsuit accusing
Credit Suisse of running a predatory loan-to-own scheme that
plaintiffs claimed loaded four luxury ski and golf resorts with
debt so it could foreclose on their assets.
Judge Justin L. Quackenbush of the U.S. District Court in Idaho
granted a request from Credit Suisse and real-estate adviser
Cushman & Wakefield for summary judgment, dismissing the suit
and handing a big victory to the two companies in a six-year-long
legal battle involving ultra-luxe vacation resorts in the Caribbean
and western U.S.
The lawsuit, filed in 2010 on behalf of more than 3,000
homeowners, property owners and other investors, accused Credit
Suisse of piling the resorts up with debt during the real-estate
boom so it could foreclose on their assets.
The property owners accused Cushman of aiding Credit Suisse's
purported scheme by creating a property-appraisal methodology that
artificially inflated the resorts' values.
Representatives for the property owners, Credit Suisse and
Cushman weren't immediately available for comment.
Write to Patrick Fitzgerald at patrick.fitzgerald@wsj.com
(END) Dow Jones Newswires
July 28, 2016 17:11 ET (21:11 GMT)
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