In a US$500 million lawsuit, the New York developer accuses Henry Cheng and Vincent Lo of a 'staggering breach' of duty
Real-estate developer and reality television star Donald Trump has sued Hong Kong business partners Henry Cheng Kar-shun and Vincent Lo Hong-sui for US$500 million, alleging 'a staggering breach' of fiduciary duty in the proposed US$1.76 billion sale of a massive property in New York City.
The lawsuit, filed in a United States court on Monday, claims the Hong Kong investors declined to entertain several counter-offers as high as US$3 billion for the 92-acre development, of which Mr Trump owns 30 per cent.
The suit - a copy of which was supplied to the South China Morning Post along with other documents - alleged that the Hong Kong investors were either grossly negligent, self-dealing or had conflicts of interest in their refusal to accept a higher price.
'There's absolutely no rational basis for their behaviour and logic dictates that there must be some improper motive - and we're going to find out what it is,' said Michael Bowe, partner at Kasowitz, Benson, Torres & Friedman, which is representing Mr Trump.
According to a June 1 New York Times report, the Hong Kong investors had agreed to sell the property to the Carlyle Group and Extell Development for US$1.76 billion - a low price that immediately generated interest from other potential buyers, according to Mr Trump.