Legal victory for New York REIT

|About: New York REIT (NYRT)|By:, SA News Editor

At issue is New York REIT's (NYRT -1%) purchase of a 48.9% stake in NYC's Worldwide Plaza in October 2013 (along with an option to buy the entire property). RXR Realty had previously been under contract to make the purchase, but didn't close.

RXR initially sued to stop New York REIT's purchase and then sued after the close seeking disgorgement of an alleged $200M NYRT made on the deal. A NY justice last week dismissed all of RXR's claims against the seller along with the disgorgement claim, permitting only a claim against NYRT for RXR's cost of producing due diligence-related material to proceed.