Bloomberg News reports that Highland’s Claymore Holdings will now have a chance to recoup what it lost from investing in Lake Las Vegas, a 3,592-acre residential and resort community that filed for bankruptcy in 2008, by asking a Texas jury to find the bank used a “grossly inflated appraisal” to boost its own fees.
“Credit Suisse and its bankers were motivated by pure greed,” lawyers for Claymore Holdings said in a court filing.
The 2013 lawsuit, which is scheduled for opening arguments in state court in Dallas today, mirrors one brought by two other Highland entities against Credit Suisse in state court in Manhattan that claimed the bank marketed loans for the Yellowstone Club in Montana and other developments based on fraudulent appraisals. That suit, which was seeking more than $350m, was rejected by the New York court.
Credit Suisse has denied any wrongdoing in connection with Lake Las Vegas. Highland is looking for a scapegoat for an investment that went sour because of the recession, Credit Suisse lawyers contend.
To access the complete Bloomberg News article hit the link below: