Thor Equities filed a lawsuit against three Lightstone Group executives over their activities with former heads at Joe Sitt’s firm.
The lawsuit, filed this week in New York County Supreme Court, names Lightstone chairman David Lichtenstein, president Mitchell Hochberg and executive vice president Joseph Teichman, the Commercial Observer reported. Thor alleges in the suit the executives helped two former executives of Thor “breach fiduciary duties.”
Those executives, former Thor vice presidents Jonathan Scheinberg and William Hunter, were not named in the suit. The firm is seeking $80 million.
The filing doesn’t provide much detail, but Teichman told the Observer it likely stems from another lawsuit filed by Thor in Maryland last year. Thor alleged Lichtenstein and Hochberg (Teichman wasn’t named in the previous suit) helped arrange the $133 million purchase of a North Bethesda business park while Scheinberg and Hunter were still at Thor; they left the firm in 2020 to form Outshine Properties.
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A joint venture between Lightstone and Outshine purchased Skybridge Towers in the Maryland suburb in February 2021.
In the Maryland lawsuit, Thor accused its former employees of hiding the acquisition and using a company staffer to surreptitiously do research for the deal. The developer claimed Hochberg became aware of the situation after dining with Scheinberg. Scheinberg and Hunter allegedly used their Thor email address when gathering information from property brokers.
Thor argued it should be able to buy the building and be compensated over the lost deal.
There’s some dispute as to how that case is unfolding. Teichman said a Maryland judge dismissed charges against Lichtenstein and Hochberg three months ago. Montgomery County Court records, however, have a jury trial on the docket for the case on Jan. 25.
The Outshine Properties honchos declined to comment to the outlet, while Thor and its attorneys have not responded to a request for comment.
— Holden Walter-Warner