The $1.6 billion Texans Credit Union said it plans to fight against a suit that claims the cooperative's commercial real estate CUSO did not follow through on providing loans for a failed Mississippi project.

Green Hills Development Company LLC and Heartland Development Company LLC filed the suit against CU Liquidity Services LLC, formerly known as Texans Commercial Capital LLC. The plaintiffs alleged that TCU and the CUSO delayed funding for a real estate project, which resulted in them having to secure capital elsewhere. The plaintiffs claimed the delay masked TCU and CULS' attempts to collect fees and commissions without ever intending to fund the project.

The plaintiffs described the transaction as a Ponzi scheme, claiming CULS did not deliver on promises of long-term lending to potential borrowers as an inducement but instead moved funds among several borrowers to provide an illusion of having adequate funding capacity.

In February, TCU

said a federal bankruptcy court in Dallas ruled that a realty firm owed CULS more than $40 million in a suit involving a defaulted Illinois property loan.