Hogan Lovells has successfully represented CPI Property Group and Radovan Vitek before the New York’s Appellate Division in a defamation dispute initiated by Kingstown Capital.
According to the firm, Kingstown Capital had alleged that Vitek obtained a minority stake in the Luxemburg-based real estate development company Orco, restructured it to form CPI, and through fraudulent transactions forced Kingstown to sell its shares at a loss. Kingstown brought its original suit against Vitek and CPI in the Southern District of New York, seeking in excess of USD 1 billion in damages.
"At the time the lawsuit was filed, CPI issued a press release stating that the plaintiffs had acted improperly in filing the federal action," a Hogan Lovells press release stated. "In 2020, a team from Hogan Lovells won dismissal of that lawsuit, and the court issued an opinion characterizing Kingstown’s choice of New York for the lawsuit as forum shopping. However, Kingstown then brought suit against CPI and Vitek for issuing the aforementioned press release, alleging defamation, which the Supreme Court, New York County, dismissed for lack of personal jurisdiction."
According to the firm, the Appellate Division affirmed an earlier ruling that the plaintiff, Kingstown Capital Management, had failed to establish personal jurisdiction under New York's long-arm statute.
Founded in the Czech Republic, CPI Property Group is a family-owned company that owns and manages income-generating real estate. The company’s portfolio focuses on the Czech Republic, Berlin, Poland, and the CEE region. Radovan Vitek is the company’s founder and primary shareholder.
The Hogan Lovells team was led by New York-based Partners Seth Cohen and Michael Hefter, Senior Associate Andrew Harris, and Law Clerk Danielle Flanagan.