David Yates Sep. 15, 2015, 4:59pm


A Texas district judge recently levied a $287 million judgment against the Credit Suisse Group, bringing the total damage award against the company to $327 million.

Court records show Claymore Holdings, a Highland Capital Management entity, filed suit against the Swiss firm on July 16, 2013 in Dallas County District Court, alleging fraud, breach of contract and fiduciary duty, unjust enrichment and civil conspiracy.

According to the original petition, the lawsuit stemmed from a 2007 refinancing transaction totaling $540 million that Credit Suisse arranged and syndicated for the developers of a master-planned community in Nevada.

In order to market the large loan, Claymore Holdings accused Credit Suisse of violating its contractual duties by concocting and approving an unreasonable and grossly inflated appraisal of the development.

“Ultimately, the Lenders were blindsided by the Fraudulent Appraisal and lost their entire investment in the Refinancing,” the lawsuit states.

“When the Borrowers defaulted shortly thereafter, the syndicate lenders were left holding the bag, secured by collateral that was worth far less than Credit Suisse and Acton had represented just months earlier.

“Credit Suisse and its bankers were motivated by pure greed in arranging the Refinancing and procuring the Fraudulent Appraisal.”

Judge Dale Tillery, 134th District Court, bifurcated the case into two trials, a jury trial on the fraudulent inducement claim and a bench trial on Claymore’s other claims.

The case was called up for a jury trial in December 2014 and the jury found Credit Suisse liable for fraudulently inducing Claymore by affirmative misrepresentation, awarding damages of $40 million, court records show.

The bench trial has held on May 27, court records show.

On Sept. 4 Judge Tillery issued a final judgment in favor of Claymore, awarding the company $211.8 million in damages $75.6 million in prejudgment interest.

Claymore is represented in part by attorney Joshua Bruckerhoff and the Austin law firm Reid Collins & Tsai.

Case No. DC-13-07858

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