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 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.