Northpark Mall owner to pay $90 million to settle class action lawsuit alleging RICO violations, gouging tenants on electricity costs

CBL & Associates, owners of Northpark Mall in Joplin, will pay $90 million to settle a class action lawsuit that alleged RICO violations and accused the company of gouging its tenants on electricity charges.

The settlement was reached shortly before the lawsuit, which was initially filed in 2016 by the owners of the Salon Adrian at GCTC, a mall formerly owned by CBL in Fort Myers, Florida, went to trial.

According to the petition, CBL allegedly added $100 to $200 a month to its tenants' electric charges. CBL officials deny any wrongdoing.








Under the terms of the settlement CBL & Associates has to set aside $90 million to pay tenants that were affected, CBL will not be allowed to pay dividends to shareholders for the final two quarters of 2019.

(W)e have denied all allegations of wrongdoing and have asserted that our actions have at all times been lawful and proper. However, given the class certification, the accelerated trial schedule, the inherent risk of any trial and the potential cost of an adverse resolution of the litigation, we believe that the settlement is in the Company’s best interest and in the best interests of our stockholders.

The settlement was announced in an SEC filing today.