Donald Trump sued by buyers who say he inflated prices of New York City Soho apartments
The Donald trumped his SoHo Grand with great fanfare on the last episode of The Apprentice in 2006, but condo buyers now say he snookered them.
Lawyers for 15 buyers contend Trump lied about how many of the units were sold in a federal lawsuit filed in
Manhattan Tuesday morning.
They claim Trump and his three famous children owe the buyers millions after claiming the condo/hotel was as much as 60% sold, when only 15% of the units have been sold.
The buyers want the $175 million they put down for deposits, punitive damages - and to get out of the purchase contracts.
The Trumps, according to the lawsuit, told buyers the 46-story hotel on Spring Street that opened in April was much more popular that it actually is.
"The defendant's false, deceptive and misleading statements were aimed at inducing consumers to enter into purchase agreements," the lawsuit says.
"Had the defendants not engaged in these fraudulent and deceptive practices, the plaintiffs would not have entered into their purchase agreements, would not have made their initial deposits, and would not have made their additional deposits."
The 391 units start at more than $1 million for a small studio - and go up from there.
"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," Trump said in a statement to
Reuters.
"Despite this, I know that numerous people have closed on their units and this case is simply a matter of buyers' remorse."
Donald Trump, his three children, and the project's "sponsor" - an company owned by Trump and two business partners - are all named in the 180-page lawsuit.
The building is "a signature project of Trump's three children, Donald Trump Jr., Ivanka Trump and Eric Trump, who have both an equity interest in the project and have publicly used the project to try to establish some independent credibility in the real estate business beyond their mere status as Trump's children," the lawsuit says.
"The Sponsor and its affiliates and sales agents - the defendants - stood to make substantial profits if large numbers of the Condominium Units could be sold, but
could face disaster if they went unsold," the suit added.