A group of companies that in April 2019 filed a lawsuit in the Southern District of New York against CPI Property Group, its majority shareholder Radovan Vítek and other accused parties, are appealing against the dismissal of the case.
The litigation proceedings concern a group of Kingstown companies, Investhold LTD and Verali Limited, that in April 2019 filed a claim in the Southern District of New York against CPIPG, Radovan Vítek and other parties alleging violations of the Racketeer Influenced and Corrupt Organizations Act in the United States. According to the plaintiffs, Vítek quietly took control of Luxembourg-based property company Orco and then sold its most valuable assets at distressed prices to entities he secretly controlled.
On 4 September 2020, the SDNY Court dismissed the claim against all defendants and directed the clerk of the court to close the case. The SDNY Court’s decision questioned the legitimacy of New York as a venue for a lawsuit with “tenuous” links to the United States and considered that a prior suit by the plaintiffs has been pending in Luxembourg since 2015.
On 18 September 2020, CPIPG filed a motion to dismiss a defamation complaint that was brought by Kingstown on 3 June 2020 in New York State court. CPIPG categorically denies all allegations and believes the argument for dismissal is extremely strong.
On 2 October 2020, the plaintiffs filed a notice of their intention to appeal the SDNY Court ruling to the United States Court of Appeals for the Second Circuit. The briefing schedule and timetable for the case has not been set.
“CPIPG is extremely confident in our legal position and will continue to mount a vigorous defence,” said Martin Nemecek, CEO of CPI Property Group.
