Rosemberg Law Obtains Summary Judgment For Florida Investor Against New York-Based Crowdfunding Firm Prodigy Network LLC

July 3, 2020

Rosemberg Law Obtains Summary Judgment For Florida Investor Against New York-Based Crowdfunding Firm Prodigy Network LLC

Avemar 2318 Corp., a Florida-based investor in a real estate project intended to develop The Standard Hotel in Chicago, prevailed on its motion seeking summary judgment against Prodigy Network, LLC , a crowdfunding investment fund in connection with its secured right to redeem its $1.5 million investment in the project along with an 18 percent annual compounded return.   The Prodigy entities refused to satisfy Avemar’s redemption request  contending that the investment documents permitted them to “suspend dealings,” including investor redemptions.  Avemar disagreed, noting that the investment documents required that a suspension of dealings be wholesale, and since the Prodigy entities continued to engage in other dealings, they could not selectively refuse to honor Avemar’s redemption request.

On competing motions for summary judgment made by Avemar and the Prodigy entities on the issue of the meaning of “suspension of dealings” within the investment documents, the New York Supreme Court (Hon. Jennifer G. Schechter), agreed with Avemar’s argument and rejected the Prodigy entities’ position.  Avemar will be permitted to recover its principal investment plus nearly two years’ worth of interest payments.

Avemar 2318 Corp. is represented by David Rosemberg of Rosemberg Law (Miami, FL) and Steven Lucks and Zack Silverman of Fishkin Lucks LLP (New York, NY).  Case Index No. 655357/2019.