BOISE, Idaho, April 1, 2011 /PRNewswire/ -- Attorney brothers Chris and John Flood from the Houston and Corpus Christi offices of Flood & Flood are announcing a federal court ruling issued in favor of homeowners suing Swiss banking giant Credit Suisse Group AG over alleged predatory lending practices involving resort property in Idaho and elsewhere.
The ruling handed down Thursday, March 31, 2011, by Judge Edward Lodge of the U.S. District Court for the District of Idaho clears the way for class-action certification and trial of the claims of homeowner plaintiffs who are seeking more than $24 billion in the lawsuit against Credit Suisse. The case is L.J. Gibson, et al. v. Credit Suisse Securities USA, LLC, et al., No. 10-00001.
Judge Lodge confirmed most of a magistrate judge's preliminary findings from February by dismissing some of the homeowners' claims, and ordering Credit Suisse to stand trial on allegations of conspiracy, breach of fiduciary duty and tortious interference. Nearly 3,000 investors bought land or homes at four luxury developments backed by Credit Suisse, including the Tamarack Resort in Tamarack, Idaho. The lawsuit says Credit Suisse encouraged plaintiffs to make their investments based on wildly inflated appraisals.
"The reckless greed we see in this case is an example of the unlawful banking practices that put our country into a terrible recession," said Chris Flood, who represents the homeowners with his brother John Flood and Michael Flynn, who leads the plaintiffs' team.
John Flood said he's honored to be working with a great team of lawyers and that he and his brother are anxious to get the bank's witnesses under oath. "We're looking forward to hearing how these folks explain their behavior," John Flood said.
In a related bankruptcy proceeding, U.S. Bankruptcy Judge Ralph Kirscher found that the resorts "were doomed to failure once they received their loans from Credit Suisse."
Flood & Flood is a three-lawyer Texas firm comprised of three litigating brothers who have practiced in courtrooms across Texas and around the U.S. The firm handles a variety of complex civil and criminal matters, including white-collar criminal defense, corporate investigations, and civil litigation with emphasis on cases involving fraud and product liability.
For more information, contact Mary Flood at 800-559-4534 or [email protected].
SOURCE Flood & Flood