SBE Entertainment Group gears up for trial over hotel sale
Investors accuse Nazarian -- who recently acquired Morgans Hotel Group -- of self-dealing
From the Los Angeles website: L.A. hospitality guru Sam Nazarian is headed to court.
The hotelier and his company, SBE Entertainment Group, are accused of self-dealing and breaching fiduciary duties in the sale of the SLS Hotel South Beach in 2015.
The plaintiff, Century City-based firm 4 Corners Holdings, alleges that Nazarian and SBE neglected to pay back its investment in the South Beach hotel project even after the property was sold. Nazarian instead favored CIM Group, another partner on the project, because it offered the hotelier lucrative management contracts at Hollywood’s Redbury Hotel, 4 Corners claimed. The company is seeking $15 million in damages. [more]