Credit Suisse to pay $288 million in damages in Lake Las Vegas refinancing
Reuters
Published Sep 04, 2015 09:38PM ET
Credit Suisse to pay $288 million in damages in Lake Las Vegas refinancing
(Reuters) - A district court judge has asked Credit Suisse Group AG (VX:CSGN) to pay $287.5 million in damages to an affiliate of Highland Capital Management, as part of a long drawn breach of contract case.
The judge asked the bank to pay about $211.9 million in damages and restitution and $75.6 million in prejudgment interest on the damages.
The damages are related to the event in which the Zurich-based bank was found to have used inflated appraisals to convince an affiliate of Highland Capital Management in 2007 to refinance the Nevada resort community, which sought Chapter 11 bankruptcy a year later.
A Texas jury found in December that Credit Suisse had fraudulently enticed investors to back a $540 million loan for Lake Las Vegas resort, only to have the borrower quickly default.
Highland Capital Management and Credit could not be reached for comment.
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Written By: Reuters
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