February 04, 2010 09:50:51 GMT
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.