TORONTO A class-action lawsuit seeking the return of deposits has been launched against the developer of a downtown Toronto hotel bearing the name of U.S. President Donald Trump, the lawyer who won an earlier test case for disgruntled investors said on Friday. The lawsuit filed against Talon International Inc (TALN. PK) in the name of Ashleka Persaud can be joined by as many as 210 other purchasers who paid deposits to buy hotel units in the tower but did not close their transactions, the filing said. A lawyer for Talon was not immediately available to comment.
The Trump International Hotel & Tower has been beset by troubles since opening its doors in 2012, and ownership of the tower itself looks set to fall to its main debt holder after a court-run sale process received no bids last month.
Talon, which licensed the Trump brand and hired a Trump-owned company to manage it, was ordered in October to pay damages to one buyer for "negligent misrepresentation" and for another sale to be rescinded. Those buyers were represented by Mitchell Wine, the same lawyer handling the new case. The Supreme Court of Canada earlier this week dismissed Talon's request for it to hear an appeal of the lower court ruling.
The expansion of similar payouts to all buyers of the tower's hotel units, which were placed into a pool of rooms to be rented out at luxury rates, could amount to a total of C$25 million, the filing said. The case is: Persaud v Talon; Ontario Superior Court of Justice file no: CV-17-569023-00CP
U.S. stocks were little changed on Wednesday as investors focused on Friday's crucial nonfarm payrolls report after a better-than-expected private hiring report strengthened chances of a rate increase next week. Financial stocks rose after the ADP National Employment report showed that the U.S. private sector added 298,000 jobs last month, blowing past economists' average estimate of 190,000. The S&P 500 financial index . SPSY rose 1.14 percent, led by gains in Bank of America (BAC. N), Citigroup (C. N) and Wells Fargo (WFC. N). Goldman Sachs (GS. N) was the top stock on the Dow with a 0.9 percent gain. Traders have priced in an all-but-certain quarter point rate hike during the Fed's meeting on March 14-15, but investors are keen to know whether the central bank would increase the pace of rate hikes. Fed Chair Janet Yellen last week remarked that tightening monetary policy would likely not be as slow this year as it was in 2016 and 2015.
"Even if the Fed raises rates next week, it would be to 75 basis points which is historically very low and is still considered very easy money," said Adam Sarhan, chief executive officer at 50 Park Investments, in Florida. "For the first time in years, you have hope that fiscal policy will be kicked into gear in the U.S. and other parts of the world ... that leads to healthier economic conditions and that's why stocks refuse to fall in a meaningful way." The dollar gathered strength on Wednesday, while gold - which tends to lose value as rates rise - was lower.
At 9:39 a.m. ET (1439 GMT), the Dow Jones Industrial Average . DJI was up 11.29 points, or 0.05 percent, at 20,936.05, the S&P 500 . SPX was up 1.95 points, or 0.08 percent, at 2,370.34 and the Nasdaq Composite . IXIC was up 11.35 points, or 0.19 percent, at 5,845.28. Eight of the 11 major S&P sectors were lower, with high dividend-yielding utilities . SPLRCU and real estate . SPLRCR nursing losses. Exxon (XOM. N) and Chevron (CVX. N) were the top drags on the S&P as oil prices slipped more than 1 percent. [O/R]
Among stocks, Caterpillar (CAT. N) fell 1.2 percent to $94.75, weighing the most on the Dow, after the New York Times said it reviewed a report commissioned by the U.S. government that accused the heavy equipment maker of carrying out tax and accounting fraud. Urban Outfitters (URBN. O) was the biggest percentage loser on the S&P, with an 8.4 percent decline following a sales miss that led William Blair to downgrade the stock and other brokerages to cut price targets. Declining issues outnumbered advancers on the NYSE by 1,460 to 1,203. On the Nasdaq, 1,538 issues rose and 718 fell. The S&P 500 index showed four new 52-week highs and six new lows, while the Nasdaq recorded 19 new highs and 13 new lows.
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