Property owners at four U.S. luxury ski and golf resorts are suing Credit Suisse Group AG for $24 billion, accusing the Swiss bank of running a “loan-to-own” program that loaded the resorts up with debt so it could foreclose on their assets when the debt couldn’t be repaid.L.J. Gibson and Beau Blixseth filed the lawsuit seeking class-action status on Sunday in a U.S. District Court in Idaho, seeking damages on behalf of more than 3,000 investors who purchased property and homes at the four developments known as Lake Las Vegas, Tamarack, Ginn Sur Mer and Yellowstone Club. All of the developments, financed by Credit Suisse, have been in default or under bankruptcy protection, causing “billions of dollars” of losses to their investors, the suit says.
By Jacqueline Plank, Jan. 5, 2010 WSJ
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Yellowstone Club, near Big Sky, Mont., is shown in this undated photograph, WSJ.