A judge has tossed a lawsuit brought by designer Tory Burch and ritzy residents at the historic Pierre Hotel — but both sides are claiming victory in dueling letters to tenants.
Burch and a group of Pierre residents sued last month, alleging the building’s board was plotting a shady deal to sell the property for a reported $2 billion that would kick the current tenants out. The lawsuit alleged the board was operating in secrecy, not even producing basic info to the shareholders.
But Justice Andrew Borrok wrote in his NY Supreme Court ruling that the building’s board subsequently turned over a non-binding term sheet to the tenants, as well as three years of the board’s minutes — so the suit was now moot.
“The terms of these agreements are thus disclosed and known to the Petitioners and the shareholders are being kept reasonable informed of the Board’s deliberative process in negotiating potential alternatives,” to the $2 billion plan, wrote the judge.
The address has played home to A-listers like Cary Grant, Elizabeth Taylor, Yves Saint Laurent and Aristotle Onassis. Current owners include Michael Eisner, Shari Resdstone, Art Garfunkel and more.
Trump cabinet member Howard Lutnick owns the largest unit at the Pierre — a 12,000-square-foot triplex penthouse he bought in 2017 for $44 million — but he’s reportedly never actually moved in.
Current residents recently received a letter from the board, obtained by Page Six, applauding, “the swift dismissal of the lawsuit brought against the Pierre by a handful of shareholders relating to the Board’s consideration of the Khashoggi/Dorchester Group’s potential $2 billion offerto purchase” the Corporation.”
Said the letter: “As we previously reported to you, these shareholders accused the Corporation’s Board of breaching its fiduciary duties by considering the potential sale of the Corporation under a supposed veil of secrecy, and sought to block the Board’s further consideration of that opportunity by overwhelming the all-volunteer Board with depositions, burdensome electronic discovery and intrusive inquiries into live negotiations with the Khashoggi/Dorchester Group and Taj.”
Taj Hotels is the building’s current manager. Some residents alleged the building’s board was doing a clandestine deal with the Saudi Khashoggi family to buy the building to be managed by the Sultan of Brunei’s Dorchester Collection.
Alleged the now-dismissed suit: “Over the vehement objections of many residents who have no desire to leave, the Board, under the sway of the Sale Proponents and their outside advisors, has insisted on pushing forward with its sale agenda while keeping shareholders utterly in the dark about the process.”
Said the opposing residents’ letter summarizing the dismissal to residents: “We write in response to the latest letter from the Pierre Hotel’s Board of Directors… The Court did not dismiss the petition on the merits; the Court dismissed it as moot because the Corporation promised the Court that the Board would start distributing additional materials that it previously refused to share. That is a victory for transparency, for the shareholders, and for the Pierre.”
Either way, the board said in its letter that it’s exploring a number of options for the grand building that’s in need of a facelift, including, “a $2 billion sale,” “a potential sale of the Corporation’s hotel to Taj” and “an amendment to the Taj lease agreement that would provide, among other things, a capital investment by Taj in The Pierre.”
Before the lawsuit was filed, Page Six reported, there was a bitter board meeting where opponents of the $2 billion plan, led by Burch, clashed with some of the board members.
The board includes David Johnson, Bruce Karatz, John Levin and Douglas Daft, while Burch’s lawsuit was backed by a group including media heir Austin Hearst, actress Lois Chiles (who played Holly Goodhead in the 1979 James Bond film, “Moonraker”), the Beverly Sommer Revocable Trust Agreement and others.
Amidst all the drama, the Pierre just threw a bash celebrating its 95th anniversary. An invitation went out for its “Red Diamond Gala,” “celebrating 95 years of its timeless elegance and iconic figure.”
The bash for 600 included a Marilyn Monroe impersonator, WWD reported, plus aerialists, a fashion show, a dance performance and more, including cases of actual red diamonds on display.
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