Credit Suisse is fighting tooth and nail against paying compensation to a U.S. hedge fund. The case is all about questionable real estate project from before the crash.
Switzerland’s second-largest bank objects to a payment to U.S. hedge fund Highland Capital in connection with a bounced loan for «Lake Las Vegas» residential resort in Nevada, the bank said in a statement today.
The case is almost five years old: an appeals court in Texas most recently confirmed the duty of Credit Suisse to pay Highland Capital $351 million. The Swiss company however has decided to take the case further as it doesn’t agree with the ruling. Some decisions in this drawn-out fight have already gone in the bank’s favor.
Hedge Fund Went Bust
Therefore, the company remains confident that the upcoming ruling will also go in its favor. The decision is due within about nine to 12 months. The bank will not pay the hedge fund anything before the next decision has been taken.
Highland Capital in 2007 had invested about $250 million in the resort but went bust a year later. The hedge fund accuses Credit Suisse of having given fraudulent information about the resort.
