A $24 billion predatory lending lawsuit filed against the Credit Suisse Group by investors in Lake Las Vegas and other resort communities in Idaho, Montana and the Bahamas can proceed.
A federal judge in Boise, Idaho, ruled Thursday that some of the investors’ claims have merit and can proceed.
The proposed class action, filed last year against the Swiss company Credit Suisse AG and some affiliated U.S. and Cayman Island companies, accuses the lender of lending money to Lake Las Vegas and the other resorts as part of a scheme to take over the developments when they had trouble repaying the loans.
New York brokerage Cushman & Wakefield is also named in the lawsuit, and is accused of helping Credit Suisse inflate appraisal values.
Lake Las Vegas investor L.J. Gibson is named as a plaintiff in the lawsuit, along with investors in Idaho’s Tamarack Resort, Montana’s the Yellowstone Club and the Ginn sur Mer project in the Bahamas.
Lake Las Vegas, a Henderson master-planned community, emerged from bankruptcy last year, and some investors blamed Credit Suisse for much of the resort’s losses.
Credit Suisse spokesman Duncan King denied the allegations.
“We are confident the remaining claims are without merit and intend to vigorously defend against them,” he said.