RCT Wins Appeal in $350 Million Lawsuit Against Credit Suisse

On December 22, 2015, the New York Appellate Division, First Department, revived $350 million in fraud claims brought by RCT’s clients, a group of funds that invested in five Credit Suisse-arranged real estate loans to the developers of Ginn Clubs & Resorts, Park Highlands, Rhodes Homes, Turtle Bay Resort, and Yellowstone Mountain Club. In overturning the lower court’s dismissal, the First Department held that the funds had adequately pleaded that Credit Suisse committed fraud by causing appraisers to issue inflated appraisals of the collateral supporting the loan transactions.

Prior results do not guarantee a similar outcome.