Welcome!

News Feed Item

Stuyvesant Town Class Action Parties Reach Settlement - Agreement Signed Today Provides $68.75 Million to Pay Damages; Total Tenants' Rent Recovery to Exceed $146.85 Million

NEW YORK, Nov. 29, 2012 /PRNewswire/ -- Wolf Haldenstein Adler Freeman & Herz LLP and Bernstein Liebhard LLP, co-lead counsel for the plaintiff tenants in the Roberts v. Tishman Speyer class action, announced they have signed an agreement with the defendants to settle all past rent overcharge claims and future rent claims raised in the action. The settlement was preliminarily approved today by Justice Richard B. Lowe, III, the Chief Justice of the Appellate Term, First Department.  The agreement requires final court approval. A hearing on final approval is scheduled for April 9, 2013.

The settlement agreement signed today sets aside $68.75 million to compensate class members for rent overcharges from January 22, 2003, the start of the class period, through December 31, 2011, the end of the overcharge period.  

"Once finally approved, today's $68.75 million settlement agreement, when combined with past refunds and rent savings the tenants have already received, will bring the total recovery in the lawsuit to at least $146.85 million," said Alexander Schmidt of Wolf Haldenstein, the plaintiffs' lead attorney. "There will also be future benefits," he added.

The past rent savings and refunds resulted from an interim agreement that was reached in the case in December 2009 between the plaintiffs and the two limited partnerships that currently own Stuyvesant Town and Peter Cooper Village, PCV ST Owner LP and ST Owner LP. Under that interim agreement $2.4 million in rent was refunded to class member tenants in 2010, and the tenants saved an additional $75.7 million in rent over the past three years, Schmidt said. Ronald Aranoff of Bernstein Liebhard, another of the plaintiffs' lead attorneys added "we believe this settlement provides an extraordinary recovery for our clients and we couldn't be happier for them."

Schmidt noted that the $146.85 million amount could significantly increase in the future because the settlement sets future rents based on a "Preferential Rent" formula that will save tenants at least another ten to twenty million dollars, and potentially more than a hundred million, over the next eight years. The exact amount of future rent savings under the formula will depend on future rental market conditions and tenant turnover rates, Schmidt added.

The settlement also continues rent stabilization through June 2020 for each of the 4,311 formerly decontrolled Stuyvesant Town and Peter Cooper Village apartments at issue in the suit. June 2020 is when the residential complexes' New York City "J-51" tax benefits expire. The New York Court of Appeals, the state's highest court, found in October 2009 that the apartments had been removed improperly from rent stabilization while the complexes were receiving those tax benefits, which are available only for rent stabilized buildings. 

The current owners of the complexes contributed $58.25 million of the $68.75 million cash component provided by today's agreement. Metropolitan Tower Life Insurance Company, the owner until mid-November 2006, contributed $10.5 million.

The settlement concludes almost 18 months of negotiations. Aranoff said that today's $68.75 million settlement includes a generous legal rent formula for the past rent overcharge claims, which yields damages of almost $10,000 per leasehold and average damage awards of $3,200 for the 21,250 class members. 

Because the legal rent formula under the interim agreement was even more generous, Schmidt said, the rents going forward may be adjusted upwards by the landlord after the settlement is finally approved, subject to the Preferential Rent formula caps. 

The cash received and saved will not be the only benefits the class members achieve as a result of this litigation, Schmidt said. "Class members will realize substantial additional benefits by retaining the full protections of the Rent Stabilization Law for the next eight years, including, most importantly, the rights to automatic lease renewal and succession.  The settlement is eminently fair and reasonable, and a very good result for the tenants."

The settlement agreement and other pertinent information about the settlement and the litigation are available at www.berdonclaims.com (click "Cases:  Current and Completed," narrow your search to "New Cases" and click "Stuyvesant Town Class Action").

 

Media Contact for Wolf Haldenstein Adler Freeman & Herz:

Lisa King                

Ned Steele

[email protected]  

[email protected]

(m) 646-234-5080           

(m) 646-234-5070

(o)  212-590-2313            

(o)  212-590-2313

SOURCE Wolf Haldenstein Adler Freeman & Herz LLP; Bernstein Liebhard LLP

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abilit...
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. Commvault can ensure protection, access and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his general session at 18th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Part...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessio...
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...
In his session at 20th Cloud Expo, Scott Davis, CTO of Embotics, discussed how automation can provide the dynamic management required to cost-effectively deliver microservices and container solutions at scale. He also discussed how flexible automation is the key to effectively bridging and seamlessly coordinating both IT and developer needs for component orchestration across disparate clouds – an increasingly important requirement at today’s multi-cloud enterprise.
In his session at @DevOpsSummit at 20th Cloud Expo, Kelly Looney, director of DevOps consulting for Skytap, showed how an incremental approach to introducing containers into complex, distributed applications results in modernization with less risk and more reward. He also shared the story of how Skytap used Docker to get out of the business of managing infrastructure, and into the business of delivering innovation and business value. Attendees learned how up-front planning allows for a clean sep...
In his session at 20th Cloud Expo, Brad Winett, Senior Technologist for DDN Storage, will present several current, end-user environments that are using object storage at scale for cloud deployments including private cloud and cloud providers. Details on the top considerations of features and functions for selecting object storage will be included. Brad will also touch on recent developments in tiering technologies that deliver single solution and an end-user view of data across files and objects...
In his session at @ThingsExpo, Arvind Radhakrishnen discussed how IoT offers new business models in banking and financial services organizations with the capability to revolutionize products, payments, channels, business processes and asset management built on strong architectural foundation. The following topics were covered: How IoT stands to impact various business parameters including customer experience, cost and risk management within BFS organizations.
Given the popularity of the containers, further investment in the telco/cable industry is needed to transition existing VM-based solutions to containerized cloud native deployments. The networking architecture of the solution isolates the network traffic into different network planes (e.g., management, control, and media). This naturally makes support for multiple interfaces in container orchestration engines an indispensable requirement.
"I will be talking about ChatOps and ChatOps as a way to solve some problems in the DevOps space," explained Himanshu Chhetri, CTO of Addteq, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.