Trump Sued Over Hotel Sales
Property tycoon DONALD TRUMP is facing a lawsuit from a group of buyers at one of his New York hotels, accusing developers of lying about sales figures to market suites.
A group of 15 buyers at the Trump SoHo Hotel Condominium filed suit against companies and individuals behind the project in Manhattan Federal District Court on Monday (02Aug10).
According to the complaint, representatives of the development said it was "30, 40, 50, 60 percent or more sold" in individual sales pitches and statements to the press, misleading them into contracts.
The buyers claim they learned in May (10) that only 15 percent of the condo units had been sold.
Defendants named in the suit include the bosses of the Bayrock/Sapir Organization LLC, the project's sponsor, Donald Trump, and business partners Alex Sapir and Tevfik Arif.
Trump family members involved in sales and marketing have also been targeted, including the mogul's children, Ivanka, Eric and Donald Trump Jr.
The plaintiffs, who have bought a total of units at the development, are suing to have their contracts rescinded and their deposits returned. They are also seeking unspecified damages and fees.
In a statement to Reuters, real estate mogul-turned-reality TV star Trump characterised the suit as a case of "buyers' remorse", adding, "The Trump Organization is not the developer of the project but merely the manager of the hotel, which has done exceedingly well since opening four months ago."