NY Court Dismisses Case Brought By Exiled Chinese Billionaire - Report

Editorial Staff

11 October 2019

A New York court has dismissed a $300 million lawsuit against Chinese developer SOHO China and principal Shiya Pan, according to media reports, and a case shining a light on the state of litigation in the US real estate market.

New York Supreme Court Judge Paul Goetz threw out the complaint brought by Guo Wengui, an exiled Chinese billionaire and real estate developer, who alleged he had been unjustifiably sued by Soho two years ago. The judge found no indication that the 2017 lawsuit had been “perversely utilized” by Soho for any other goal than to protect its reputation, The Real Deal reported.

Guo reportedly accused Soho of a “malicious and knowingly baseless attempt to badger through unjustifiable litigation.” Guo alleged that as a result of that case, his construction projects were cancelled and he lost rental income. He sought $300 million in damages and attorney fees.

The Soho lawsuit had accused Guo of slander for accusing the company on social media of improperly procuring favourable zoning changes to increase the value of its development, colluding with Chinese government officials and breaking regulatory agreements.

Soho dropped its case in 2018 while a motion to dismiss from Guo was still pending.