Drip Coffee sues Kimco Realty over alleged fraudulent lease practices

Drip Coffee filed a lawsuit against Kimco Realty Corporation (NYSE: KIM) in Broward County, Florida, alleging the real estate investment trust engaged in fraudulent business practices involving tenant leases.

The suit, filed in the Circuit Court of the Seventeenth Judicial Circuit, claims Kimco entered into multi-year leases with tenants while simultaneously planning to evict them to accommodate larger retailers. Drip Coffee alleges it was used as a "pawn" to provide short-term rent while Kimco planned a redevelopment project affecting more than 100,000 square feet of shopping center space.

According to the complaint, Kimco failed to disclose plans for demolition of an LA Fitness location and movie theater to make room for a Target store. Drip Coffee claims the New York-based shopping center developer solicited leases it knew it could not fulfill.

"Kimco business practices have the company enter into agreements the company has no intention of keeping," said Taylor Schear, Drip Coffee president. "Kimco has abandoned the safety of their tenants and patrons in favor of profits."

The lawsuit was filed after attempts to resolve the matter with Kimco failed, according to the press release. Drip Coffee describes itself as an emerging coffee brand that offers drinks including the Honey Bear Latte, Sticky Situation and Burnt Ritual.

The allegations center on claims that Kimco's practices resulted in business disruption and financial losses for tenants who entered lease agreements in good faith.

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