Ceasefire: Town, Reuveni settle $25M lawsuit over noncompete

Exec will have to pay Town a share of his future commissions: sources

New York /
May.May 24, 2017 12:40 PM

Town Residential’s new development division has settled a $25 million legal battle with former executive Shlomi Reuveni over alleged breaches of his noncompete agreement with the firm.

The settlement comes just two weeks after a judge ruled to uphold the noncompete, saying Town had a credible argument and a strong likelihood of success in its suit. As a result, Reuveni would have been barred from working in the Manhattan new development space for a two-year period.

As part of the settlement, Reuveni will drop a separate $16 million lawsuit he brought against the company last year, alleging that his noncompete shouldn’t stand because he’d been forced to terminate his employment contract due to the company’s “numerous breaches and other inappropriate conduct.”

In a prepared statement, a Town TRData LogoTINY spokesperson said the complete terms of the settlement remain confidential and that no money had changed hands, but sources told The Real Deal that Reuveni may have to pay a portion of his future new development commissions to Town as part of the deal. Neither party would confirm those terms.

“The parties approached the settlement fairly and reasonably and I am pleased the matter has been settled,” Reuveni said in a statement.

Reuveni previously said he would operate his new development brokerage, Reuveni Real Estate. He declined to comment on any of the company’s projects.


Related Articles

arrow_forward_ios
(Illustration by Alexis Manrodt for The Real Deal)
The Real Deal’s Prodigy exposé wins NY Press Club Award
The Real Deal’s Prodigy exposé wins NY Press Club Award
The penthouse in Lightstone's 40 East End was the most expensive contract, with developer David Edelstein of TriStar Capital selling the second priciest (Lightstone, Getty)
After early-July lull, Manhattan luxury deals are on the upswing again
After early-July lull, Manhattan luxury deals are on the upswing again
Brad Inman and Beringer Capital's Perry Miele (Inman, Beringer)
Inman acquired by private equity firm Beringer Capital
Inman acquired by private equity firm Beringer Capital
Gov. Andrew Cuomo (Getty, iStock)
NY rent relief rollout slowly inches forward as evictions loom
NY rent relief rollout slowly inches forward as evictions loom
Eric Adams (Getty, iStock)
City program could supplement state rent relief — if next mayor signs off
City program could supplement state rent relief — if next mayor signs off
John Catsimatidis and 670 Pacific Street (Getty, StreetEasy)
Catsimatidis notches win for landlords in 421a suit; tenants vow to appeal
Catsimatidis notches win for landlords in 421a suit; tenants vow to appeal
(iStock)
Overbooked Hamptons hotels spark bidding wars
Overbooked Hamptons hotels spark bidding wars
Photo illustration of Nest Seekers' Dylan Eckardt and the Amagansett property (iStock, Nest Seekers)
Tall tale: Nest Seekers’ “$50M” Amagansett sale was actually $16.5M
Tall tale: Nest Seekers’ “$50M” Amagansett sale was actually $16.5M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...