Investors behind three CDOs – Cedarwoods CRE CDO III, Concord Real Estate CDO 2006-1 and Resource Real Estate Funding CDO 2006-1 – filed a lawsuit this week to block a junior lender from exercising the fair value purchase option on the $150 million defaulted loan secured by JW Marriott Las Vegas Resort & Spa securitized in CSMC 2007-TFLA,  according to a New York court filing.

The lawsuit alleges that the junior lender, Galante Holdings, has conspired with various parties to purchase the loan for less than $85 million.

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