April 26, 2018
On April 26, 2018, Weil secured an appellate victory for Credit Suisse AG before the U.S. Court of Appeals for the Ninth Circuit. In a unanimous decision, the Ninth Circuit panel affirmed the District of Idaho judge who had granted summary judgment in favor of Credit Suisse, dismissing claims related to the development of four luxury resort properties across North America and the Bahamas. The case began as a $24 billion putative RICO class action, and has effectively ended with a complete victory for Credit Suisse.
Plaintiffs, who purchased properties at luxury resort developments in Idaho, Montana, Nevada, and the Bahamas, claimed that the property developers had promised them that various amenities would be built and maintained at these resorts. Plaintiffs further alleged that Credit Suisse, along with its co-defendant Cushman & Wakefield, had provided the resort developers with loans, based on fraudulent appraisals, that the developers would be unable to repay; that these loans caused the developers to default and go into bankruptcy; and that as a result of such defaults, the promised amenities ultimately were not provided (or were discontinued) by the developers, causing the plaintiffs injury.
The Ninth Circuit affirmed the lower court, finding that Credit Suisse was not negligent because it owed no legal duty to parties, like plaintiffs, who purchased property from the developers; that there was no tortious interference with plaintiffs’ contracts because plaintiffs had no promised contractual rights that they lost because of bankruptcy; that there were no fraudulent misrepresentations because Credit Suisse did not make any false or misleading representations to plaintiffs; and that there was no evidence that Credit Suisse had engaged in any conspiracy to harm the plaintiffs.