DGAP-News: CPI PROPERTY GROUP - New York Litigation Update

CPI PROPERTY GROUP
(société anonyme)
40, rue de la Vallée
L-2661 Luxembourg
R.C.S. Luxembourg: B 102 254

PRESS RELEASE
Luxembourg, 16 March 2020

CPI PROPERTY GROUP - New York Litigation Update

CPI PROPERTY GROUP ("CPIPG" or the "Group") has prepared the following update for our stakeholders regarding the lawsuit filed in April 2019 against CPIPG and other parties in the United States District Court for the Southern District of New York (the "SDNY Court"). The lawsuit concerns a group of Kingstown companies, Investhold LTD and Verali Limited (together, the "Kingstown Plaintiffs") who filed a claim in the United States against, among others, CPIPG and Mr. Radovan Vitek (the "CPIPG Defendants") alleging violations of the Racketeer Influenced and Corrupt Organizations Act ("RICO") in the United States.

The claims brought by the Kingstown Plaintiffs are baseless and have no merit. CPIPG's business has been totally unaffected by the lawsuit and the CPIPG Defendants continue to mount a vigorous defense.

Litigation Timeline and Update
On 10 September 2019, the CPIPG Defendants filed a motion to dismiss the case in the SDNY Court.
On 22 November 2019, the Kingstown Plaintiffs filed an amended complaint in the SDNY Court, which added new non-US defendants and simply continued the false campaign against CPIPG and Mr. Vitek (among other Defendants), in an attempt to generate new headlines.
On 14 February 2020, the CPIPG Defendants filed a motion to dismiss the amended complaint.
On 13 March 2020, the Kingstown Plaintiffs filed a response to the motion to dismiss. Plaintiffs' briefing contains numerous inflammatory (and untrue) allegations, yet still fails to cure the serious jurisdictional deficiencies and pleading defects present in the original complaint.

The CPIPG Defendants' response to the Kingstown Plaintiffs' motion is currently due on 10 April 2020. CPIPG strongly believes the amended complaint warrants dismissal and awaits a decision from the Court in due course. The Group will continue to update all of our stakeholders on progress in the case and appreciates the unwavering support that CPIPG has received from our tenants, bond investors, banks and other stakeholders.

For more on CPI PROPERTY GROUP, visit our website: www.cpipg.com

For further information please contact:

INVESTORS

CPI PROPERTY GROUP
David Greenbaum
Chief Financial Officer
d.greenbaum@cpipg.com

CPI PROPERTY GROUP
Joe Weaver
Director of Capital Markets
j.weaver@cpipg.com

MEDIA/PR

Kirchhoff Consult AG
Andreas Friedemann
Borselstraße 20
22765 Hamburg
T +49 40 60 91 86 50
F +49 40 60 91 86 60
E andreas.friedemann@kirchhoff.de