Brokerage Sues Over Jana Chief’s Record-Setting Hamptons Buy

Jul 30 2014 | 7:47am ET

Real-estate brokerage Corcoran Group has sued Jana Partners’ Barry Rosenstein, claiming it was cut out of his $147 million deal for an East Hampton, N.Y., estate.

Corcoran last week filed suit against Rosenstein and the sellers of the 18-acre waterfront property, alleging that its Tim Davis had been hired as the exclusive agent to sell the home in January—and had negotiated a $155 million deal for the home—before the sellers struck their agreement with Rosenstein.

Corcoran is seeking up to $8.82 million—roughly the amount saved by the sellers by going with Rosenstein.

The brokerage said it had “structured the deal and was awarded the listing three months before the sale, but was excluded from the transaction.” It added that the sellers “willfully” negotiated “in secret” with Rosenstein.

According to the lawsuit, Rosenstein initially offered $75 million and then $125 million for the property, telling Corcoran that their asking price was too high. The price he eventually paid set a record for a U.S. residential property.

Corcoran accuses Rosenstein of having “conspired” with the sellers to “avoid the brokerage fee.”

“This dispute is between the sellers of the property and a broker claiming to represent them,” a Rosenstein spokesperson said. “Mr. Rosenstein, as the buyer, should not be a party to the complaint and we are confident the court will see if that way as well.”


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.