December 22, 2016

On December 20 and 21, 2016, the New York Law Journal and the New York Post reported on a lawsuit filed by Schlam Stone & Dolan on behalf of CABS Nursing Home, Inc., in the Kings County Supreme Court, Commercial Division. The lawsuit alleges that CABS was defrauded into selling the nursing home to the Allure Group, based on representations that Allure would continue to operate the nursing home. Instead, Allure immediately tried to close the nursing home and flip it to a developer in order to build luxury apartments. The lawsuit seeks rescission of the sale or in the alternative compensatory and punitive damages. Schlam Stone & Dolan Partner Jeffrey Eilender was quoted by the Law Journal, saying “the only reason CABS ever entertained any proposal by the Allure Group was because the Allure Group marketed themselves as being in the nursing home business. Its entire mission was to help the Bed Stuy community.” CABS is being represented by Mr. Eilender, Bradley Nash, Samuel Butt and Seth Allen.