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Suit filed against Empire State Building IPO

Stakeholders in the Empire State Building lost more than $400 million in potential profits when the owners rebuffed potential buyers to go public, a new lawsuit says.

By Jennifer Peltz | Updated on December 26, 2013
The Empire State Building, right, rises into the climbs into the New York City skyline lit in the colors of the South African Flag to observe the passing of former South African President and Civil Rights leader Nelson Mandela. (AP Photo/Bebeto Matthews)

NEW YORK (AP) — Thousands of stakeholders in the Empire State Building lost more than $400 million in potential profits when the managing owners rebuffed potential buyers in order to sell public shares in the iconic skyscraper, a new lawsuit says.

By spurning all-cash offers for the tower and instead packaging it with lesser-known office properties into a publicly traded stock, father-and-son real estate magnates Peter and Anthony Malkin put their interests ahead of those of the building’s longtime investors, lawyer John Rizio-Hamilton said Thursday. He represents one of those investors, who filed the suit Tuesday seeking class-action status on behalf of roughly 3,000 people who hold Empire State Building shares that were sold privately in 1961.

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