Jay-Z sues investment firm over Manhattan hotel loan

Hip-hop superstar Jay-Z, a.k.a. Shawn Carter, has filed a lawsuit again investment firm Highland Capital Management over a 2007 loan to help him build a hotel in Manhattan, according to BBC News.

Carter says that when the value of the property fell, he attempted to return it to Highland to avoid repossession, and that the company’s subsequent unresponsiveness cost him millions; the lawsuit seeks $3.7 million in damages. The lawsuit also claims that Highland improperly diverted funds meant from a reserve account.

Highland says his claims are “meritless,” and that the loan remains in default.

Comments (2 total) Add your comment
  • FMRHCMLP

    What I find interesting about this is that Highland says they are doing this to protect their investors. Interesting, they didn’t seem so concerned about protecting their investors but instead themselves in the aftermath of Lehman. In those fateful days various Highland entities offloaded the equity tranches of their own CLOs to Crusader (their largest Hedge Fund). This may sound confusing, so basically what happened is that Highland stripped cash from investors accounts in exchange for worthless securities. If you ask any investor if they would rather have cash or the equity tranche of a CLO, they’ll pick cash everytime, and put it to better use. So Highland before you parade yourself as the great defender of your investors, remember you still have skeletons in your closet, and some former employees are not afraid of you.

  • Niken

    Love the new look and design, Ash!! Write soimetme and let me know how you and Stephen are doing!! Wish you were here you could do pictures of Sam for his 4th birthday today!! Also, meet Nicki who is also doing wedding/eng photog!!

Add your comment
The rules: Keep it clean, and stay on the subject - or we may delete your comment. If you see inappropriate language, e-mail us. An asterisk (*) indicates a required field.

When you click on the "Post Comment" button above to submit your comments, you are indicating your acceptance of and are agreeing to the Terms of Service. You can also read our Privacy Policy.

Latest Videos

Advertisement

TV Recaps

Powered by WordPress.com VIP