Our thanks to Associate Editor, David Russell, at the Queens Chronicle for his coverage of class-action suit against a Manhattan-based private equity firm, Blackstone Group.
Filed in March 2018, Newman Ferrara LLP alleged that Jack Parker Corporation, Blackstone’s predecessor, had illegally deregulated apartments, all while receiving tax breaks under a special tax initiative called the “J-51 Program.”
Blackstone recently announced that it had agreed to immediate monthly rent-reductions averaging $230, and to pay $1.1 million in refunds to over 110 tenants, and, to restore some 82 units to rent stabilization, at its Queens residential complex.
“We are of the view that the recently announced rent refunds and rebates are just the tip of the iceberg,” Lucas A. Ferrara, the attorney for the tenants, said to the Queens Chronicle. “As we peel away the layers, and examine the owner’s books and records, we’re certain we’ll find that additional tenants were bamboozled and/or that even more units will be restored to stabilization, and that even greater refunds will be warranted.”
While Newman Ferrara has not yet had a chance to review the calculations or underlying paperwork for the refunds that Blackstone issued, Ferrara suspects that additional “irregularities” will be uncovered, as he believes that Blackstone’s independent auditing firm may have used an incorrect formula to calculate rent refunds.
The litigation will now proceed to the discovery phase, and Newman Ferrara will aggressively pursue all available remedies for the impacted tenants.
To read the full article, please click on the link below: https://www.qchron.com/editions/queenswide/m-for-tenants-at-parker-towers/article_2187cf30-f984-531a-b486-a63c6804514f.html