Jay-Z Sues Investment Firm Over Failed Hotel Deal
Jay-Z and his wife Beyonce recently landed at the Number One spot on Forbes' 'Top-Earning Couples' list, which can only mean one thing -- more money, more problems. On Wednesday (Feb. 3) Jay-Z filed a lawsuit in a New York District Court against investment firm, Highland Capital Management LP, over claims that the company pressed him to cough up $1 million for a failed hotel deal.
According to the lawsuit, in 2007 Jay borrowed $52 million from Column Financial of Manhattan to construct a new hotel in the Chelsea neighborhood of New York City. When the economy hit rock bottom, the company abandoned plans to erect the new structure and passed the loan along to Highland Capital Management. The suit goes on to explain that Highland Capital and co-defendant NexBank, agreed to take control of the space on W. 21st, but took an extended period of four months to close the deal, for each day of which, Jay-Z was forced to pay $20,000.
Jay-Z's lawyers are seeking a court ruling declaring that the rapper has fulfilled his payment obligations and should be awarded a sum of $3.7 million to cover damages and extraneous costs incurred during the time period. A spokesperson for Highland Capital Management issued a statement saying that Jay-Z's claims hold no merit, and maintains that the rapper is still indebted to the company. "Highland believes the claims asserted by Mr. Carter are meritless, and [the company] will vigorously defend itself and intends to pursue the obligations owed to Highland's investors by the borrower, Mr. Carter and the other guarantors," Highland said.