SBE Entertainment Group gears up for trial over hotel sale

Investors accuse hotelier Sam Nazarian of self-dealing in SLS deal

TRD LOS ANGELES /
Jan.January 18, 2017 12:00 PM
Sam Nazarian (Credit: Twitter)

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.

Some of the original claims contained within the lawsuit have been dismissed, but “triable issues of material fact” remain, a Los Angeles Superior Court judge ruled in November, according to the Los Angeles Business Journal. The plaintiff’s attorney, Scott Gizer of Early Sullivan Wright Gizer & McRae in Mid-Wilshire, said his client’s primary allegations remain intact.

The trial date is set for February.

“The case is about the defendant breaching his fiduciary duty and misrepresenting how much my clients would make,” Gizer told the Business Journal. “We are very confident that at trial our claims will be borne out.” [LABJ]Cathaleen Chen


Related Articles

arrow_forward_ios

Sam Nazarian on the LA hotel market and potential merger with Hakkasan Group

Nazarian family sells Century penthouse for $15.2M

How the SBE-Morgans deal finally came together

Securities law firm investigating Morgans-SBE deal

William McMorrow, Todd Boehl, Sunset North building in Bellevue (Credit: Getty Images)

Kennedy Wilson receives $300M investment, announces new $1.5B target for West Coast fund

Frank Lloyd Wright, Ron Burkle, and the Ennis House

Billionaire Ron Burkle sells Frank Lloyd Wright-designed home at record price

The city of LA wants to rewrite the book on parking (Credit: iStock, Wikipedia)

No Parking Zone: LA seeks to hide garages amid development boom

Do pocket listings have their place in the LA market?

arrow_forward_ios