Investors in broke resorts sue Credit Suisse, say bank giant schemed to take over properties
By APMonday, January 4, 2010
$24 billion lawsuit filed against Credit Suisse
BOISE, Idaho — Property owners at four struggling and bankrupt resorts in Idaho, Montana, Nevada and the Bahamas have filed a $24 billion federal lawsuit against Credit Suisse, saying the bank gave predatory loans to the resorts’ investors as part of a scheme to take over the properties.
Property owners at Idaho’s Tamarack Resort, the Yellowstone Club in Montana, Nevada’s Lake Las Vegas resort and the Gin Sur Mer Resort in the Bahamas filed the lawsuit Sunday. They are seeking class-action status.
The property owners say Credit Suisse set up a branch in the Cayman Islands to skirt U.S. federal banking regulations and appraised the resorts at artificially inflated values as part of a plan to foreclose.
A Credit Suisse spokesman says the Swiss-based bank will fight the claims.
