Michael Shvo picked up a win in his legal fight with the exclusive Core Club at 711 Fifth Avenue.
A judge recently found the members-only venue in contempt of an order to check IDs of visitors in the lobby, Crain’s reported. The order was issued in December and Shvo asked the club to be held in contempt at a hearing last month.
A lawyer for the developer asked the judge to fine the club $250 for each day it failed to follow the order, which would add up to a $13,000 penalty. The lawyer also called on the club to pay Shvo’s legal fees. A decision about the remedy remains pending.
Core Club did not respond to the outlet’s request for comment.
It’s the second consecutive victory for Shvo in his longstanding dispute with Core Club. Last month, the judge dismissed Core Club’s primary fraud claims against Shvo, though claims including unjust enrichment and breach of agreement regarding the construction of a new New York Core Club survived.
Core Club sued in 2024 after a partnership between the two sides deteriorated.
The issue stemmed from a 2022 agreement between the parties. Shvo approached the Core Club leaders with a promise to develop three locations in New York, San Francisco and Milan, investing about $100 million. Shvo failed to deliver and Core Club accused Shvo of a scheme to wrest ownership of the club away using fraud. The Enterprises, who lead the company, claimed he never intended to spend $100 million to expand Core Club.
The judge, however, said that even if Shvo wasn’t committed to keeping his promise, that doesn’t meet the legal standard for fraud.
The development adds to recent headlines centered on the Core Club heads and the embattled developer.
Emails released by the federal government in recent months showed the Enterprises’ close relationship with disgraced financier Jeffrey Epstein, which coincided with the financial challenges Core has faced since its opening in 2005. The sex offender was a founding member of the club, and emails show he remained involved in its high-level business operations for over a decade, offering advice and introducing potential partners.
Elsewhere in New York, Douglas Elliman sued a Shvo-led development entity last week, alleging breach of contract after being terminated as the exclusive sales agent for the Mandarin Oriental Residences. The brokerage is seeking the outstanding $125,000 of a $250,000 termination fee, arguing the developer did not provide “cause” for the firing or file documents to show the offering plan was abandoned.
The developer notched a win on the opposite coast last month when Cyprus-based Yoda PLC paid $692 million for the Transamerica Pyramid. The deal for the San Francisco landmark came as a loss of hundreds of millions of dollars for the prior ownership group led by Shvo that put nearly $1 billion into the building. But Shvo himself managed to walk away with a $34 million payout.
The Enterprises
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Core Club’s fraud claims against Michael Shvo dismissed
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Michael Shvo comes out on top with Transamerica Pyramid sale; his partners aren’t so lucky
