Highland Wins $40 Million In Lawsuit Against Credit Suisse

Dec 19 2014 | 12:46pm ET

Christmas has come early for Highland Capital Management. The Dallas-based hedge fund firm today won its court case against Credit Suisse AG, which was convicted of defrauding Highland in a real estate refinancing deal.

The Swiss bank  has been ordered to pay $40 million in damages to Highland.

Highland first brought the case against Credit Suisse last year after the bank steered a fund Highland manages—Claymore Holdings—into refinancing a real estate development deal in Las Vegas. Highland argued that the bank hired appraisers who assigned “a grossly inflated value” to the property, which resulted in Highland losing more than $250 million when the borrowers defaulted.

“Credit Suisse and its bankers were motivated by pure greed,” said lawyers for Claymore Holdings in an earlier court filing, explaining that the higher the appraisal, the higher the fees Credit Suisse could collect.

A similar case filed by Highland last year in a New York court was tossed.


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