Back in March, the Hospitality Lawg took its first look at the securities litigation surrounding the Trump SoHo, a New York condominium hotel. The plaintiffs' primary beef was that they had bought under the impression that 60% of the units were sold, when at the time the developers had closed on just 16% of the units.
You may have noticed that it was our only post on this litigation - there hadn't been a single new filing in the court's record since the plaintiffs and defendants had traded memorandums of law on the defendant's motion to dimiss back in March.
They cried 'fraud' - an now, a bunch of well-heeled apartment hunters will get a staggering 90% of their deposits back on posh pads they intended to buy at the troubled Trump SoHo condo-hotel because they relied on the developers 'deceptive' sales figures.
While the result is presumably good news for the parties involved, we were hoping to see the judge analyze the plaintiffs' contention that the developers structured the rental program to “virtually ensure that all unit owners will use Trump Hotels to rent and manage their units,” thereby coverting the unit purchase agreements into investment contracts (a/k/a securities) required to be registered with the SEC and the New York securities commission.
For those fans of condotel securities litigation, Tarsadia is still working its way through the appeals process.