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Stuyvesant Town owners agree to class action suit

Wed Feb 3, 2010 7:45pm EST

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NEW YORK, Feb 3 (Reuters) - The owners of a vast New York City apartment complex agreed on Wednesday to allow a tenant's lawsuit regarding rent increases to proceed as a class action.

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New York's highest court had ruled in October that the owners had improperly raised the rents of certain rent-stabilized apartments.

A joint-statement with lawyers representing Tishman Speyer and the tenants of Stuyvesant Town/Peter Cooper Village said the two sides agreed to extend an interim agreement reached in December to adjust the rents of apartments affected by last year's court ruling.

Under the extended agreement, tenants will continue to pay the lower of either their lease rent or an estimated stabilized rent through June 2010 and will be allowed to renew their leases.

In addition, money held in an escrow account in connection with November and December 2009 rents will be fully reimbursed to the tenants, the attorney's said in a statement.

A lawsuit seeking damages for the rent increases will also be allowed to proceed as a class action, the lawyers added.

Earlier this year, the owners defaulted on about $4.4 billion of debt used in 2006 to finance the $5.4 billion sale of Stuyvesant Town/Peter Cooper Village to a group led by Tishman Speyer and BlackRock Inc (BLK.N). (Reporting by Ilaina Jonas; editing by Andre Grenon)

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