Alexico Group is facing a federal lawsuit from two Toronto-based buyers looking to back out of their apartment contract at the Laurel condominium at 400 East 67th Street at First Avenue.

Warren Shepell and Morris Berchard filed suit Oct. 26 in U.S. District Court alleging that the developer failed to file a property report with federal regulators under the Interstate Land Sales Disclosure Act.

Shepell and Berchard signed a November 2007 contract to buy an apartment at the Laurel for about $2.7 million, and deposited $401,250 into an escrow account held by attorney Kramer, Levin, Naftalis & Frankel to reserve Apt. 12B, according to the complaint.

By June 2008, the buyers made a second deposit of $267,500, for a total deposit of $668,750, according to the complaint. [more]