Developer Michael Stern and JDS Development Group are alleging a John Doe orchestrated a smear campaign to spread false and defamatory information about him and his company, according to a lawsuit filed last week.
Stern, CEO of Miami-based JDS, is suing to uncover the identity of the operator of the website JDSpulse.com and affiliated social media accounts. The complaint, filed in Miami-Dade Circuit Court, alleges the person is likely a competitor of Stern and JDS. The website is not currently active, but the social media accounts still exist.
The website, launched in mid-March, stated that it was “dedicated to exposing the fraudulent activities of Michael Stern.” It alleged Stern has a “documented criminal history” and that his business model has been “plagued by unethical practices, financial misconduct, and fraudulent dealings.” The website also alleged that Stern’s empire “is built on deception, forged documents, and financial manipulation.”
Stern denies the allegations, according to the complaint.
The website targeted real estate investors and others in the industry, many of whom were Stern’s close business associates, according to the complaint. On social media, the hidden account has replied to posts by The Real Deal, Bloomberg and Crain’s New York.
Reputation is important in the real estate industry, and Stern and JDS have had to do damage control as a result. “The website has already been the subject of several unpleasant conversations between plaintiffs and current and prospective investors,” according to the lawsuit.
JDS is very active in Miami-Dade County, where its projects include the planned Dolce & Gabbana-branded 888 Brickell Avenue condo development, the planned Mercedes-Benz-branded 1 Southside Park project, also in Brickell, and the 1250 West Avenue condo tower proposed in Miami Beach.
At a Miami Beach commission meeting last week, city officials approved on first reading zoning amendments that will allow the developer and its partner, Gianluca Vacchi’s GV Development Group, to build a taller and slimmer tower on the site of 1250 West Avenue. The final votes for the project, including a development agreement, are expected in a June 25 meeting.
Stern’s lawsuit is reminiscent of “Million Dollar Listing Los Angeles” star Josh Flagg’s alleged hacking lawsuit filed last year. Flag accused an unknown person or persons who created an email account registered with encryption services provider Proton of allegedly “accessing private and confidential information” stored on his computer network or system. Flagg is suing for invasion of privacy and violating the state’s Comprehensive Computer Data Access and Fraud Act. His attorneys recently amended the complaint, naming Douglas Elliman’s former Western region CEO, Stephen Kotler, as a defendant. The lawsuit is still pending.
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