NEW YORK, Dec. 26 (UPI) -- Investors claim they lost more than $400 million when the Malkin family's Empire State Realty Trust ignored private offers before an initial public offering.
Stakeholders are suing the family that manages the Empire State Building in a class-action filed Dec. 24 claiming $410 million in cash losses.
The Maklin family raised about $754 million in a public offering for the iconic 102-floor midtown Manhattan skyscraper on Oct. 1, but shareholders claim that a $13 per share price raised the building's actual worth to $1.89 billion.
"At a bare minimum, the Malkins should have, but did not, meaningfully engage with the bidders," said the suit filed in Manhattan Supreme Court on Christmas Eve.
Real estate tycoon Peter Malkin and his son, Anthony, planned to take a dozen properties public over the past year, the New York Daily News said. The Malkins bought the Empire State Building from Donald Trump in 2002 and settled a previous lawsuit by agreeing to pay investors $55 million.