Does our NYC co-op board need to tell shareholders that we’re getting sued?

Herrick partner, Andrew Freedland, was quoted in a Brick Underground article explaining when shareholders need to be informed about a lawsuit filed against board members, and how there is a limit to what needs to be shared.

Andrew notes that he commonly tells shareholders and owners that there is litigation at the annual meeting, and adds that he can’t disclose much more than that during an ongoing case. That tends to shut down the rumor mill, he said.

"When a litigation is filed it becomes public record," said Andrew. "Somebody is going to find out about it and that’s when I find there’s a rumor mill in co-ops and condos. People start chattering."

Read the full article in Brick Underground here.