A group of property investors are suing Credit Suisse for fraud, alleging it extended loans to four luxury resorts on predatory terms to ensure the Swiss bank would eventually control the properties once they defaulted, media reports said today.

The lawsuit was filed on Sunday in a US District Court in Boise, Idaho. Credit Suisse was reported to have said that the suit was without merit and will defend itself in the case.

For most of last year, Credit Suisse had escaped from the heavy losses and tax controversies that beset its Swiss rival, UBS. However, late last year, the firm said it expects to pay US authorities $536 million to settle matters connected to financial dealings with Iran.

The latest case also highlights how losses in property and other markets have prompted investors in some jurisdictions to resort to their lawyers in a bid to get some recompense.

The plaintiffs, led by LJ Gibson and Beau Blixseth, are seeking $24 billion, including $16 billion in punitive damages, reports said.

The complaint also alleges that Cushman & Wakefield, the real-estate company, conspired with Credit Suisse to defraud investors by providing appraisals the banks used to inflate the value of the resorts.