About 3, 000 investors are after real estate father and son team of Peter and Anthony Malkin.
Stakeholders holding Empire State Building shares sold privately in 1961, will not be allowed to sue for the loss of more than $400 million in potential profits they incurred, after the owners refused to sell to interested buyers, AP reports. A Manhattan state Supreme Court judge has ruled that a $55 million settlement reached last year barred them from suing again.
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“The settlement agreement … contains a covenant not to sue, ” Justice O. Peter Sherwood wrote on Tuesday, dismissing an investors’ lawsuit.
About 3, 000 investors were trying to sue the real estate father and son team of Peter and Anthony Malkin. According to plaintiffs’ attorney Stephen Meister, they will appeal.
When the Empire State Building was sold in 1961, the buyers offered shares at $10, 000 each to help finance the deal. Everyday New Yorkers pulled their savings together, to own a share in the great landmark.
In 2013, the Malkins came out with an IPO plan combining 12 properties, including the Empire State Building. Trading began at $13 a share and reached about $16 on Tuesday.