Jay-Z Sues Bank and Firm With $3.7 Million Hotel Lawsuit


Jay-Z


Pointing at a bank and investment firm for failing to pay their loans, Jay-Z has filed a lawsuit and seeks for $3.7 million.

Jay-Z has filed a double lawsuit against a bank and investment firm, accusing the businesses of owing him $3.7 million over his New York hotel development. The "Big Pimpin'" hitmaker - real name Shawn Carter - was set to plough money into the J Hotel, a luxury development in the Big Apple.

His company bought a $66 million plot in New York City in 2007 and obtained a $52 million loan that was assigned to investment managers Highland Capital Management LP and serviced by NexBank SSB. The firm also obtained an extra $11.8 million loan for the venture.

But due to the ailing economy, partners failed to pull in investors and there was a shortfall in funds - so Jay-Z offered the land back to bosses at Highland rather than face foreclosure. In papers filed in Manhattan federal court on Wednesday, February 3, the rapper alleges that executives at Highland were slow in accepting the offer, causing him to accrue interest and personal costs on the loans.

The documents also claim Highland chiefs improperly diverted funds that Jay-Z's company had placed into a reserve to cover potential environmental problems. The papers state, "This action arises out of the efforts by defendants to bleed additional funds from (the) plaintiff. Defendants embarked on a bad faith course of conduct." Jay-Z is seeking $3.7 million in damages.

© AceShowbiz.com


MORE FROM NEWS

Leave a Comment

Required fields are marked with *

   

TODAY'S HEADLINES

  1. Bella Hadid Goes Braless in Completely Sheer Top. See the Eye-Popping Pics
  2. Suki Waterhouse Flashes Nipples in See-Through Dress During Chilly Beach Photo Shoot
  3. Khloe Kardashian Is 'Thrilled' She's Expecting First Child With Tristan Thompson
  4. Brad Pitt Reportedly Moving In With Kate Hudson Amid Angelina Jolie Divorce
  5. Jennifer Lopez Breaks Silence on Her Relationship With Drake
  6. Angelina Jolie Loses Her Team's Trust Amid Brad Pitt Custody War
  7. Is Charlize Theron's Adopted Son Becoming a Girl? He Wears Box Braids and Pink Outfit
  8. Kim Kardashian Did Want to Divorce Kanye West. Here's Why She Stays
  9. Blake Lively 'Livid' Over Ryan Reynolds' Possible Reunion With Ex-Wife Scarlett Johansson
  10. Report: Angelina Jolie Is Forced to Hand Over Kids to Brad Pitt

CELEBS PHOTO