All Class Members should receive this notice. Class Members are all people who were or are tenants in an apartment in the Building if such apartment was treated as unregulated by the Rent Stabilization Law while the Landlord was receiving J-51 tax benefits. The Court in this case approved this notice to inform Class Members (a) that a proposed Settlement has been reached, and (b) of all of their options before the Court decides whether to approve the Settlement. As of April 1, 2024, the Landlord will re-set the rents of all affected apartments to the Reset Rents. If the Court approves the Settlement, and after any objections and appeals are resolved, payments will be mailed to eligible Class Members whose Claim Forms are received by May 13, 2024.

This lawsuit is about whether Debtor, the Landlord, and its affiliates, improperly treated apartments in the Building as being unregulated under the Rent Stabilization Law even though it was receiving J-51 tax benefits. Plaintiffs allege, among other things, these actions violated the J-51 Law, and the Rent Stabilization Law and Code. Defendants deny that they violated the law.

In a class action, one or more people (called “Class Representatives” or “Lead Plaintiffs”) bring a lawsuit and are appointed by the Court to sue on behalf of all people who have similar claims. The Lead Plaintiffs here are Kathryn Casey, Laurie Cagnassola, Gerald Cohen, Betty Furr, Francesca Gagliano, Carolyn Klein, Joseph Morgan, Richard Rose, Jessica Saks and Kirk Swanson. All of the people with similar claims are together called a “class,” and each person is a “class member.” One court decides the issues for all class members — except for those who opt out of the class. In this case, Class Members can choose to opt out of this Settlement. Any Class Member who opts out may file their own case against the Landlord.

The Settlement resolves years of unresolved litigation, avoiding the cost, delays and uncertainty of further litigation. The Lead Plaintiffs and their attorneys think the Settlement is best for all Class Members.

The Defendants ("Defendants") are Whitehouse Estates, Inc. Koeppel & Koeppel, Inc., Duell 5 Management LLC d/b/a Duell Management Systems, William W. Koeppel and Eastgate Whitehouse, LLC. The Debtor is Eastgate Whitehouse, LLC, the Landlord at the Building.

The Class in this case consists of all current and former tenants in the Building who lived in an apartment on or after October 14, 2007 that was treated as unregulated by the Landlord during any period while it was receiving J-51 tax benefits. Members of the Settlement Class who are former tenants that did not receive Rent Credits or pay Default Rents and who paid rent that was more than the legal rent by a total of more than $150 are entitled to a proportional share of the Money Settlement if they submit a timely Claim Form. Members of the Settlement Class who received Rent Credits and paid Default Rents and would owe the Debtor the difference between the Reset Rents and Default Rents, plus any Rent Credits that were applied toward rent, will not be required to pay such amounts, so long as they do not opt-out of the Settlement and are current on their rent obligations as of the Rent Adjustment Date. Any Member of the Settlement Class who is entitled to any damages but such amount is $150 or less will receive a minimum damages payment of $150.

You are part of the Settlement Class if you were a tenant in an apartment in the Building on or after October 14, 2007 and that apartment was treated as unregulated by the Landlord while the Landlord was receiving J-51 tax benefits. If you are unsure whether you are a Class Member, you may (i) write the Administrator at Donlin, Recano & Company, LLC, P.O. Box 2053, New York, NY 10272, United States of America; or (ii) call the Administrator at 1 (888) 396-0853 (toll free U.S.); or (iii) email the Administrator at EastgateInfo@angeiongroup.com.

The Settlement provides for:

(i) Reset Rents. The calculation of the Reset Rents pursuant to the formula set by the Court of Appeals for the 81 Affected Units. A chart setting forth each apartment and the applicable Reset Rent is included in this package.

(ii) Money. In order to pay tenants owed for prior overcharges as well as cover other costs of the Settlement, the Settlement provides that a settlement amount of $2,200,000.00 (the “Settlement Fund”) will be paid out from proceeds of a sale or transfer of the Debtor’s interest in the Building pursuant to the Secured Lender Plan and will be used to pay the following categories: (i) overcharge refunds to certain past tenant class members (the “Eligible Class Members”) who timely submit claims, (ii) class representative service awards in the amount of $10,000 for each named class representative, or their successors, heirs or assigns (iii) class notice and administrative costs in an amount up to $35,000, and (iv) attorneys’ fees and costs of Class Counsel as determined by this Court.

(iii) Waiver of Repayment of Rent Credits. For tenants who received rent credits that were erroneously issued to certain tenants (the “Rent Credits”) and applied those Rent Credits toward rent, such class members (the “Rent Credit Class Members”) would be required to repay those amounts to Debtor. However, under the Settlement, Class members who do not opt-out of the Settlement and who are current on their rent obligations as of the Rent Adjustment Date will not be required to pay such amounts to the Debtor.

(iv) Waiver of Repayment of Underpaid Rents. For tenants who paid Default Rent pursuant to an interim court order that was without prejudice to the parties’ rights, such Rent Credit Class Members would be required to repay to Debtor the difference between the Reset Rents and Default Rents. However, under the Settlement, Class members who do not opt-out of the Settlement and who are current on their rent obligations as of the Rent Adjustment Date will not be required to pay such amounts to the Debtor.

(v) Deregulation of 31 Units. The Settlement provides that the 31 Affected Units identified therein (the “Deregulated Units”) could have been lawfully deregulated pursuant to high rent vacancy deregulation under the then-current RSL between June 30, 2014 and June 14, 2019. Accordingly, the Deregulated Units are properly deregulated and Debtor may file exit registrations reflecting the date of deregulation. Pursuant to the Settlement, the current tenants of the Deregulated Units are not subject to rent regulation but may remain in occupancy at the applicable Reset Rent for a period of one (1) year from the Effective Date of the Settlement (the “Expiration Date”). At the Expiration Date, Debtor may offer the tenant a free market lease at the current market rent or provide a notice of non-renewal at Debtor’s option.

(vi) Releases. The Settlement also provides for the release of claims by the class action members against Debtor and certain other parties.

If the Court approves the Settlement, three categories of costs will be deducted from the Settlement Fund before money will be available to eligible Class Members:

• All of the fees and expenses to administer and/or implement the Settlement up to $35,000;

• Service Awards in the amount of $10,000 to each of the ten Lead Plaintiffs to compensate them for the risks they took and their service to the Class in bringing this lawsuit; and

• Attorneys’ fees and costs awarded to Class Counsel (see Question 19 below).


The Court may award less than these amounts.

Based on the formula preliminarily approved by the Court, the money in the Settlement Fund (out of which administrative costs, Service Awards to the Lead Plaintiffs, and attorneys’ fees and costs will also be paid as described above) will be divided among the Class Members that submit timely Claim Forms who will each receive (1) a minimum of $150 if the amount they overpaid according to the Rent Setting Formula was $150 or less, or (2) a proportional share of the remainder if an Eligible Class Member paid more rent to the Landlord than they should have, up to a full refund of that amount but only if those Class Members do not opt out of the Class and submit a Claim Form that is received by the Administrator by May 13, 2024.

The amount each eligible Class Member receives will be based on (a) how much money above the Reset rents that the Landlord received from the Class Member and (b) how many people submit valid and timely Claim Forms.

See Answer #10 above. All Class Members should receive in the mail a notice specific to them that explains: (1) your Reset Rent amount(s); (2) the amount you paid over time that is over and above the Reset rent amount(s); (3) the maximum amount you may expect to receive if you submit a timely Claim Form,; and (4) an opportunity to alert the Administrator if you believe the amount of rent you paid to the Landlord in the past is incorrect. If you think you are a Class Member but did not receive this Notice, you may (i) write the Administrator at Donlin, Recano & Company, LLC, P.O. Box 2053, New York, NY 10272, United States of America; or (ii) call the Administrator at 1 (888) 396-0853 (toll free U.S.); or (iii) email the Administrator at EastgateInfo@angeiongroup.com.

Note that you may receive additional amounts if there is money remaining in the fund after distribution of all amounts under the Settlement, if there are still funds in the Settlement Pool, but in no event will that amount exceed 200% of the damage amount as calculated

.

If you do not opt out of the Settlement (see Question 16), you will give up all of your legal rights to file your own lawsuit against the Defendants (or any related entities or individuals) arising out of the Landlord’s treatment of apartments as unregulated while it was receiving J-51 tax benefits. All of the Court’s orders will apply to you and legally bind you.

The claims that are released by the Settlement and the persons and entities who are released by it are defined in the Settlement Agreement. The release is a very important part of the Settlement, and, if you do not opt out of the Settlement, and the Settlement is finally approved by the Court, you will be bound by all of the terms of the release. The release is broad and applies to all claims arising out the operative facts set out in the Complaint filed by Lead Plaintiffs that have been asserted or could have been asserted against the individuals and entities that are included in the definition of “Releasee.” The term “Releasee” includes not only the Defendants but also all of their related persons and entities (including, for example, their directors, officers, employees, members, agents, attorneys, and representatives). A copy of the full release (with the relevant definitions) is available here at paragraphs 30-35 on pages 23-25. If you do not opt out, you cannot sue, continue to sue, or be part of any other lawsuit, or file any claims with an administrative agency against the Defendants (or the Releasees) involving any of the claims that are released. If you have a pending lawsuit that involves the Defendants, you should speak to your lawyer in that case immediately to see if this Settlement will affect your other case.

If the Settlement is not approved by the Court, no one will get any money from the Settlement. The litigation would continue.

You must submit a Claim Form to the Administrator that is received by May 13, 2024 by mailing the form to the following address: Donlin, Recano & Company, LLC, P.O. Box 2053, New York, NY 10272, United States of America, or by submitting a Claim Form online at www.donlinrecano.com/350east52ndClassAction

The Court will hold a virtual hearing on May 29, 2024 at 10:00 a.m. via Microsoft Teams (Meeting ID: 260 122 389 428, Passcode: Y4JiAn) at the Supreme Court of the State of New York, Count of New York, 60 Centre Street, New York, New York 10007. The hearing — which is known as the Settlement Hearing — will let the Court hear arguments on whether it should approve the Settlement. If the Court approves the Settlement, objectors may appeal that approval. It is always difficult to predict whether an appeal will be brought or, if an appeal is brought, how long it will take for the appeal to be resolved. Resolving an appeal can take time, perhaps more than a year. No payments will be made until the Settlement is finally approved and any appeal resolved, and until the sale or transfer of the property occurs. Please note that the date of the Settlement Hearing may change.

If you do not want a payment from the Settlement, and you want to keep the right to sue or continue to sue Defendants, you must take steps to tell the Court you do not want to participate in the Settlement. This is called “opting out.” If you have a pending lawsuit that involves the Defendants, you should speak to your lawyer in that case immediately to see if this Settlement will affect your other case.


To opt out from the Settlement, you must send a letter to the Administrator stating that you want to opt out from the Settlement in Casey v. Whitehouse Estates, Inc., Index No. 111723/2011 and acknowledging that, by opting out, you will not receive any funds from the Settlement. You must include your name, address, telephone number, and signature. Your opt-out request must be received by the Administrator no later than May 13, 2024, and it must be mailed to the Administrator at the following address: Donlin, Recano & Company, LLC, P.O. Box 2053, New York, NY 10272, United States of America. If you ask to opt out, you will not get any settlement payment, and you cannot object to the Settlement.

Simply not returning the Claim Form to receive the money payment is not enough to keep the right to bring your own lawsuit. Unless you actively opt out, you will give up that right.

If you opt out, you will not receive any money from this lawsuit Settlement.

But, you may bring your own case, at your own expense, to seek damages from the Defendants relating to the rent you paid for your apartment.

Simply not returning the Claim Form to receive the money payment is not enough to keep the right to bring your own lawsuit. Unless you actively opt out, you will give up that right.

The Court has decided that the lawyers at Emery Celli Brinckerhoff Abady Ward & Maazel LLP and Himmelstein McConnell Gribben & Joseph LLP are qualified to represent you and all Class Members in the Settlement. These lawyers are called “Class Counsel.” You will not be charged for these lawyers. You do not need to retain your own lawyer in order to participate as a Class Member. If you want to be represented by your own lawyer, you may hire one at your own expense.

To date, Class Counsel have not received any payment for their services or expenses in pursuing Plaintiffs’ and the Class Members’ claims for more than twelve years. Class Counsel have committed significant time and expense to litigating this case for the benefit of Plaintiffs and the Class. Class Counsel will ask the Court to be paid for their fees and out-of-pocket costs out of the portion of the Settlement Fund set aside to cover Settlement Costs (see Question 9). Attorneys’ fees will not be more than the amounts remaining in the Settlement Fund after payment of all Class claims and administrative costs. If you decide to hire your own attorney, you will be responsible for that attorney’s fees and expenses.

If you are a Class Member (and do not opt out from the Settlement), you can object to any part of the Settlement that you do not like, and you can give reasons why you think the Court should not approve the Settlement. The Court cannot modify the Settlement; it can only approve or not approve it. To object, you must send a letter that includes the following: (a) your name, address, telephone number, and email address if you have one; (b) a statement saying that you object to the Settlement in Casey v. Whitehouse Estates, Inc., Index No. 111723/2011; (c) the reasons you object; (d) whether you want to speak at the Settlement Hearing (see Question 24); and (e) your signature. Mail the objection to the Administrator at: Donlin, Recano & Company, LLC, P.O. Box 2053, New York, NY 10272, United States of America. The Administrator must receive your objection by May 13, 2024. The Administrator will take care of submitting it to the Court and serving it on Class Counsel and Defendant’s counsel.

Objecting is simply telling the Court that you do not like something about the Settlement. You have to be a Class Member to object. Opting out is telling the Court that you do not want to be a Class Member. If you opt out of the Settlement, you can file your own claim against the Defendant at your own expense.

The Court will hold a virtual Settlement Hearing on May 29, 2024 at 10:00 a.m. via Microsoft Teams (Meeting ID: 260 122 389 428, Passcode: Y4JiAn) at the Supreme Court of the State of New York, Count of New York, 60 Centre Street, New York, New York 10007 to decide whether to approve the Settlement.

At this hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them. The Court will listen to people who have asked, in writing, to speak at the hearing. The Court may also decide how much to pay Class Counsel. After the hearing, the Court will decide whether to approve the Settlement. We do not know how long the Court will take to reach its decision.

PLEASE NOTE: The date of the Settlement Hearing may change. If you (or counsel you have hired to speak on your behalf) decide to attend the Settlement Hearing, you should double-check the date by calling the Administrator at 1 (888) 396-0852 (toll free U.S.) or emailing the Administrator at EastgateInfo@drc.equniti.com.

No. Class Counsel will answer questions the Court may have. If you send an objection, you do not have to come to Court to talk about it, but you may if you want to. As long as you mailed your written objection to the Administrator on time, the Court will consider it, whether you attend the hearing or not. You may also pay your own lawyer to attend, but it is not necessary.

Yes. To speak at the Settlement Hearing, you must send a letter to the Administrator at: Donlin, Recano & Company, LLC, P.O. Box 2053, New York, NY 10272, United States of America, saying that (a) you wish to speak at the Settlement Hearing in Casey v. Whitehouse Estates, Inc., Index No. 111723/2011; (b) the reasons you object; (c) whether you want to speak at the Settlement Hearing (see Question 24); and (d) your signature. Be sure to include your name, address, telephone number, your signature, and what you want to speak about. Your letter stating your desire to speak at the hearing must be received by the Administrator no later than May 13, 2024.

If you want, you can (at your own expense) have an attorney speak for you at the hearing. If you have hired an attorney to speak for you at the hearing, your attorney will have to notify the Court and counsel of record that he or she is entering an appearance on your behalf. Your counsel’s filing must be received by the Court and by counsel no later than May 13, 2024.

This notice summarizes the proposed Settlement. More details are in the Settlement Agreement. If you have any questions about this notice or the Settlement, you should contact the Administrator by (i) writing the Administrator at Donlin, Recano & Company, LLC, P.O. Box 2053, New York, NY 10272, United States of America; or (ii) calling the Administrator at 1 (888) 396-0853 (toll free U.S.); or (iii) email the Administrator at EastgateInfo@angeiongroup.com; or (iv) you can also find additional information at the settlement website at www.donlinrecano.com/350east52ndClassAction.