Co-op Shareholders Can't Intervene in Tenants' Class Action

February 1, 2011

LVT Number: #23142

In 2007, rent-regulated tenants in buildings owned by Pinnacle Group sued landlord, claiming violations of the Racketeer Influenced and Corrupt Organizations law (RICO), rent-stabilization laws, and consumer protection laws. In 2010, the court declared that the case was a class action by rent-stabilized and rent-controlled tenants. Co-op shareholders of four Pinnacle buildings then asked the court to join the lawsuit and participate in settlement negotiations.

In 2007, rent-regulated tenants in buildings owned by Pinnacle Group sued landlord, claiming violations of the Racketeer Influenced and Corrupt Organizations law (RICO), rent-stabilization laws, and consumer protection laws. In 2010, the court declared that the case was a class action by rent-stabilized and rent-controlled tenants. Co-op shareholders of four Pinnacle buildings then asked the court to join the lawsuit and participate in settlement negotiations. The court said no, and found that the co-op shareholders didn't qualify under federal rules because they didn't have a legal interest in the case.

Charron v. Pinnacle Group NY LLC: Index No. 07 Civ 6316, NYLJ No. 1202476944616 (SDNY; 12/22/10)

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