The Real Deal Miami

Soffer money woes continue as Lehman sues

February 15, 2010 12:36PM

The fallout from the failed Fontainebleau Las Vegas casino project continues to plague developer Jeffrey Soffer, who has been hit with a $168 million lawsuit from Lehman Brothers. The fallen investment bank wants Soffer to cover the loan he personally guaranteed for
the ambitious expansion of the Fontainebleau franchise to the Sunset
Strip. This sets the stage for a major legal clash between Soffer and
creditors of his casino project, which was sold to Carl Icahn last
month for a paltry $150 million. The project had previously been valued at $2 billion.
That’s not the end of Soffer’s troubles: the Miami Beach Fontainebleau
resort faces more than $60 million in claims by contractors who worked
on its $500 million renovation, as well as a $660 million overdue
construction loan from Bank of America. [Miami Herald]