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Re: Manhattan Club Lawsuit (by Nathan Z.):

I followed the instructions posted on this blog and left a message for Mr. Solomon, who returned my call and patiently explained as much as he was able. The NYAG is not acting as an attorney for individuals and cannot give individuals any advice. The following are not a direct quotes and are my interpretation only.

(1) The MC has not been charged with anything. There was an investigation which resulted in a $6.5M settlement and a change in management. (2) The settlement will not be administered by the AG, but by an administrator selected by the new management and presumably approved by the AG. Think of someone like Irving Picard after the Madoff scandal. (3) MC owners will be contacted by the administrator. If you want a copy of the settlement agreement, you can submit a FOIL (Freedom of Information Law) request to the NYAG's office online. That will add your name to the list receiving copies WHEN the information is released. (4) The settlement applies to all purchases made in New York regardless of the buyer's state of residence.

This settlement still has a long way to go before anyone sees compensation. And as frustrating as that may be, the NYAG has accomplished more than any of the other suits brought to date. And even if the compensation is small, the fact that a cloud has been lifted and good management restored should return some liquidity to our MC interests.