Page last updated at 11:19 GMT, Thursday, 4 February 2010

Jay-Z sues over New York hotel loan

The project was to have become the J Hotel

Jay-Z is suing investment firm Highland Capital Management for $3.7m (£2.3m) over a 2007 loan to help him build a hotel in Manhattan.

The rapper, real name Shawn Carter, says that, when the value of the land he had bought fell, he tried to give it back to Highland to avoid repossession.

Mr Carter says the company dragged its heels costing him millions in interest.

Highland said it would defend itself against the "meritless" claims, saying the loan remained in default.

The new building was to have been called the J Hotel.

Mr Carter also claims that Highland improperly diverted funds from a reserve account he had set up to cover any environmental problems.

"This action arises out of the efforts by defendants to bleed additional funds from the plaintiff," the rapper's lawyers stated in legal documents.

"Defendants embarked on a bad faith course of conduct."

Mr Carter is seeking the damages, as well as a declaration allowing the land to be given back to Highland.

Print Sponsor

U2 and Jay-Z record Haiti track
20 Jan 10 |  Entertainment
Jay-Z and Beyonce 'top earners'
13 Jan 10 |  Entertainment
Jay-Z puts on world class show
29 Jun 08 |  Music

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Sign in

BBC navigation

Copyright © 2017 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific