July 29, 2016
A $24B lawsuit against Credit Suisse and Cushman & Wakefield was thrown out by a federal judge earlier this week.
The suit accused the financial services company of running a loan-to-own scheme that put four luxury ski and golf resorts in debt, forcing plaintiffs to foreclose on their assets.
Cushman & Wakefield was also implicated in the six-year legal battle—accused by property owners of assisting Credit Suisse by creating a system for property appraisals that inflated the resorts’ values.
More than 3,000 homeowners, property owners and investors claimed to have lost $8B in damages—and filed for three times that amount—on their investments at Ginn Sur Mer Resort in the Bahamas, Lake Las Vegas Resort, Idaho’s Tamarack Resort, and Yellowstone Club in Montana, the Wall Street Journal reports.
The US District Court in Idaho granted Cushman & Wakefield and Credit Suisse their request for summary judgement, and Judge Justin Quackenbush said in his 45-page opinion that the plaintiffs failed to show “Credit Suisse wanted to own the resorts.” [WSJ]