Highland Capital Management is suing Credit Suisse Group AG for more than $500 million, the hedge fund firm’s latest salvo in efforts to recoup some losses from the Swiss bank’s ill-fated loan program to developers of luxury properties in the U.S., the Wall Street Journal reported yesterday. In a lawsuit filed on Friday in state court in Dallas, Highland’s lawyers accused Credit Suisse of using their settlement talks, which took place over a period of years, as “a way to keep a lid on its bad behavior” while the statute of limitations ran out on other investors’ claims totaling billions of dollars. Credit Suisse spokesman Drew Benson dismissed the lawsuit as an attempt by Highland to revive its legal claims in Texas after a judge in New York rejected them. Credit Suisse previously has denied wrongdoing in connection with the loan program. The bank also maintains that any verdict in favor of Highland will be set aside or offset by other credits and that the bank will ultimately not have to pay any damages to Highland.
