Resort Developer Blixseth Seeks to Join $2.5 Billion Credit Suisse Lawsuit
The founders of the Yellowstone Club and Tamarack Resort are seeking to join a group lawsuit against Credit Suisse Group AG (CSGN), according to a July 22 filing in U.S. federal court in Boise, Idaho.
Tim Blixseth and Alfredo Miguel want to join the suit against the Swiss bank originally filed in January 2010 that seeks at least $2.5 billion, according to a statement they issued today.
The two contend they were defrauded through a “predatory loan scheme that artificially inflated the value of the resorts to saddle them with enormous and unsustainable debt,” according to the statement.
Property owners and other investors lost billions of dollars at the luxury resorts, which defaulted on their loans, the two said in their statement. Yellowstone Club filed for bankruptcy in 2008. Creditors put Tamarack Resort into involuntary bankruptcy in 2009.
Blixseth and his former wife, Edra Blixseth, founded the Yellowstone Club, near Big Sky, Montana, in 2000 as a ski resort for millionaires looking for vacation homes. Tamarack, a golf and ski resort in Valley County, Idaho, is on leased state land. It’s partly owned by VPG Investments Inc., controlled by Miguel, a Mexican businessman.
“Credit Suisse rejects these entirely meritless allegations,” Steven Vames, a spokesman for the Zurich-based company, said in an e-mailed statement. “Mr. Blixseth’s attempt to latch onto an existing suit, which has already seen many of the plaintiffs’ claims dismissed, is simply his latest attempt to shift blame to others and away from his own conduct.”
The case is Gibson v. Credit Suisse AG, 10-cv-001, U.S. District Court, District of Idaho (Boise).
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