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Credit Suisse to pay $288 million in damages in Lake Las Vegas refinancing

A Credit Suisse sign is seen on the exterior of their Americas headquarters in the Manhattan borough of New York City, September 1, 2015. REUTERS/Mike Segar

(Reuters) - A district court judge has asked Credit Suisse Group AG (CSGN.VX) to pay $287.5 million in damages to an affiliate of Highland Capital Management, as part of a long drawn breach of contract case.

The judge asked the bank to pay about $211.9 million in damages and restitution and $75.6 million in prejudgment interest on the damages.

The damages are related to the event in which the Zurich-based bank was found to have used inflated appraisals to convince an affiliate of Highland Capital Management in 2007 to refinance the Nevada resort community, which sought Chapter 11 bankruptcy a year later.

A Texas jury found in December that Credit Suisse had fraudulently enticed investors to back a $540 million loan for Lake Las Vegas resort, only to have the borrower quickly default.

Highland Capital Management and Credit could not be reached for comment.


(Reporting by Lehar Maan in Bengaluru; Editing by Ken Wills)