Jury Awards Highland Capital $40 Million in Suit Against Credit Suisse

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 [e-mail]

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