By Patrick Fitzgerald
A Texas jury on Friday awarded hedge-fund firm Highland Capital
Management $40 million in its lawsuit against Credit Suisse over
inflated appraisals of a dozen luxury properties such as golf
communities and ski resorts during the mid-2000s.
Highland sued Credit Suisse in July 2013 in state district
court, alleging the bank improperly inflated the value of the
communities to entice investors.
"We're pleased with the jury verdict and $40 million award for
the investors who were victimized by Credit Suisse's intentional
fraud," said Scott Ellington, Highland's general counsel. "We
pursued this litigation only after repeated attempts to reach a
settlement and get Credit Suisse to take responsibility for
contriving to manipulate the appraisal process."
A Credit Suisse spokesman couldn't immediately comment on the
verdict.
Highland funds lost millions on their investments in Credit
Suisse-backed communities such as Nevada's Lake Las Vegas and ski
communities like Montana's Yellowstone Club, Utah's Promontory Club
and Idaho's Tamarack Resort before the real-estate bubble
exploded.
Write to Patrick Fitzgerald at patrick.fitzgerald@wsj.com
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