Credit Suisse hit with £14.9bn property lawsuit
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Credit Suisse has been hit with a £14.9bn lawsuit from a number of luxury property owners after being accused of running a “predatory” loan-to buy scheme that allegedly defrauded investors.
According to reports, the Swiss bank is alleged to have operated a scheme that inflated the value of four luxury holiday developments only to burden the owners with too much debt. The bank then seized the properties when the owners defaulted on their debt.
Both Credit Suisse and real estate group Cushman & Wakefield have been filed with the lawsuit by property owners LJ Gibson and Beau Blixseth in the US.
The lawsuit alleges that “Credit Suisse knew at the time the lending advice and authorisations were given that its schemes and tactics would cause the developers and the resorts financial ruin, resulting in the ultimate takeover from Credit Suisse.”
The claimants are seeking £5bn in losses and almost £10bn in punitive damages as well as the award of class-action status for their claim.
Speaking in The Daily Telegraph, Credit Suisse spokesman Duncan King says: “We believe this suit to be without merit and will defend ourselves vigorously.”
Cushman & Wakefield says: “The allegations are completely without merit and we will defend ourselves vigorously.”
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