Mamdani Lawsuit Roundup: Landlords, Wage Theft, and Adams Defense

The lawsuits tied to Mayor Zohran Mamdani since he took office on January 1, 2026 fall into four groups: housing enforcement actions the city has brought against negligent landlords, labor and wage-theft cases against fast-food, retail, and delivery-app employers, the withdrawal of city-funded legal defense for former Mayor Eric Adams, and a resident lawsuit against the city itself over a homeless shelter relocation. The Mamdani lawsuits taken together represent one of the most aggressive early legal agendas of any recent New York City mayor.

Housing Cases Against Landlords

Housing enforcement is where the administration has moved most aggressively, and where the dollar figures are largest.

A&E Real Estate: $2.1 Million Settlement

On January 16, 2026, the Department of Housing Preservation and Development announced a $2.1 million settlement against A&E Real Estate, its principals Douglas Eisenberg and Margaret Brunn, and managing agent Brian Garland. The deal covered 14 buildings in Brooklyn, Manhattan, and Queens and required A&E to correct more than 4,000 building code violations. HPD retained authority to seek further penalties for noncompliance, and injunctions barred tenant harassment.1NYC.gov. Mamdani Administration Announces Historic $2.1 Million Settlement

The company had accumulated more than 140,000 total violations, including 35,000 in the year before the settlement. Tenants had reported bed bugs, fire hazards, broken elevators, mold, crumbling ceilings, and exposed wiring. A tenant at a Jackson Heights building said a long-term elevator outage that began in July 2024 contributed to the death of an 84-year-old neighbor during a heat wave.2Queens Eagle. City Reaches $2.1 Million Settlement With A&E Real Estate

The January settlement did not cover every A&E property. More than 100 tenants at La Mesa Verde, represented by Communities Resist, filed a separate lawsuit in September 2025 seeking repairs and restitution. That case was still active in early 2026.3Queens Ledger. A&E Tenants Brave Cold to Demand Housing Justice

The $31 Million Bronx Judgment

In May 2026, HPD announced what it called the largest civil penalty in agency history: a $31 million judgment against Karan Singh and Rajmattie Persaud, owners of Robert Fulton Terrace and Fordham Towers in the Bronx. Tenants in the nearly 500 apartments had reported chronic elevator outages in the 17-story buildings, missing heat and hot water, crumbling balconies, leaks, mold, and infestations. The owners had accumulated more than 1,000 violations and had previously appeared on the Public Advocate’s “Worst Landlords List.”4NYC.gov. Mayor Mamdani, HPD Announce Largest Ever Penalty Against Negligent Landlord

The court appointed an independent chief restructuring officer to oversee conditions and froze more than $900,000 from the landlords’ bank accounts, releasing it to the officer for critical repairs. The judgment also gave the city leverage in ongoing bankruptcy proceedings on the properties. Officials asked Fannie Mae, which had begun foreclosure, to help identify a responsible long-term buyer.5ABC7 New York. Mayor Mamdani, Housing Officials Announce Big Settlement Win Against Bronx Landlord

The timeline for direct disbursements to tenants remained unclear at a May 6 press conference. The Amsterdam News reported that immediate priorities were emergency repairs and building restructuring rather than individual payouts.6Amsterdam News. Shady Landlords Face $31 Million Payout Over Decades of Neglect in Bronx Building

Seth Miller: Nuisance Abatement Ruling

In February 2026, Bronx Supreme Court Justice Marissa Soto issued what the administration called a first-of-its-kind ruling under New York City’s Nuisance Abatement Law. The court ordered Seth Miller, president of Aegis Realty, to pay $1,000 per day in penalties for uncorrected code violations at 919 Prospect Avenue, a rent-stabilized building in the South Bronx. The fines dated back to April 21, 2019 and totaled more than $2.1 million. The court declared conditions a public nuisance and issued a permanent injunction against continued neglect.7Bisnow. Seth Miller Zohran Mamdani $2.1M Judgment

Inspectors had documented rodent and cockroach infestations, leaking pipes, collapsed ceilings, black mold, peeling lead paint, inoperable boilers, unsafe electrical equipment, obstructed fire escapes, and falling facade debris. The building was under a partial vacate order. Miller was given two weeks to resolve the most severe violations and one month to address the rest, with the $1,000 daily penalty continuing to accrue on anything unresolved.8Fox News. Mamdani Touts Landmark Court Victory Against Repeat-Offender Landlord

By March 2026, the New York Post reported the compliance deadlines had arrived but did not confirm whether Miller had met them. Mamdani said the Tenant Protection Unit would return to court if repairs were not completed.9New York Post. One of NYC’s Worst Landlords Forced to Pay $2.2M Fine

Pinnacle Group Bankruptcy

On his second day in office, Mamdani directed Corporation Counsel Steve Banks to intervene in bankruptcy proceedings involving the Pinnacle Group, owner of more than 90 buildings containing roughly 5,100 rent-stabilized apartments. Pinnacle had filed for Chapter 11 protection in May 2025 after Flagstar Bank moved to foreclose on more than $600 million in debt. The buildings had drawn over 5,000 violations and 14,000 tenant complaints, and Pinnacle owed HPD about $12.7 million in unpaid fines.10Gothamist. Judge Rejects Mayor Mamdani’s Bid to Slow Bankruptcy Sale of 5,100 NYC Apartments

Summit Properties USA, headed by Zohar Levy, had bid $451 million for the portfolio. Tenants organized as the Union of Pinnacle Tenants opposed the sale, alleging ties between Summit and existing ownership. The city sought to delay the auction to find a preservation-oriented buyer, but on January 8, 2026, federal bankruptcy Judge David Jones denied the request and allowed the sale to proceed.11The Real Deal. Mamdani Pinnacle Group Bankruptcy NYC

Labor and Wage Theft Cases

The administration’s second front is the Department of Consumer and Worker Protection, which has moved against fast-food chains, a retailer, and a delivery-app company.

Fair Workweek Settlements

On March 24, 2026, DCWP announced settlements and enforcement actions worth nearly $1.8 million in restitution for more than 830 fast-food and retail workers denied basic scheduling protections under New York’s Fair Workweek Law.12NYC.gov. Mamdani Administration Secures Nearly $2M in Restitution for 800+ Workers

Salz Management LLC, a Dunkin’ and Taco Bell franchisee operating 24 locations in Manhattan and Queens, agreed to pay more than $1.5 million in restitution to over 760 workers plus $155,000 in civil penalties. Payments were scheduled to begin in August 2026. Theory LLC, a fashion retailer with two Manhattan stores, agreed to pay more than $277,000 to over 60 workers plus $21,000 in penalties, with payments to begin in April 2026.

Both employers were cited for failing to provide schedules 14 days in advance and failing to obtain worker consent for schedule changes. The fast-food workers were also subjected to “clopenings,” closing a store late and reopening it early the next morning, without the legally required extra pay. Individual payments ranged from about $50 to more than $13,000, and workers did not need to file a complaint to receive their share.13Bushwick Daily. NYC Mayor Secures $2M for 800 Fast-Food Workers in Fair Workweek Settlements

DCWP separately filed an enforcement petition against QSR Management LLC and its managing corporate officer Ronny Nader, a Dunkin’ franchisee operating 21 Staten Island locations. The agency alleged thousands of Fair Workweek and Protected Time Off violations affecting about 1,000 workers, with potential penalties of $200 to $500 per violation. DCWP had previously settled a 2022 case involving one of Nader’s locations for $187,000 covering 112 employees. The new petition was filed at the Office of Administrative Trials and Hearings and remained pending in mid-2026.14Documented. Mamdani Cites Dunkin’ Franchise Owner for Allegedly Violating Workers’ Rights

Motoclick Delivery App

In January 2026, DCWP sued Motoclick, formally Patio Delivery Inc., and its CEO, Juan Pablo Salinas Salek, in New York State Supreme Court. The city alleged the delivery app charged workers a $10 penalty for canceled orders, deducted the full cost of refunded meals from paychecks, and violated the city’s minimum wage and distance rules for delivery workers.15The Nation. Zohran Mamdani Wage Theft Motoclick Delivery App

The city sought not just recovery of stolen wages but to shut down the company entirely. DCWP Commissioner Samuel Levine said the agency aimed to obtain a judgment against the CEO personally and recover assets. Twenty workers had filed the initial complaints that triggered the investigation. The case, City of New York v. Patio Delivery Inc., remained active in early 2026.16Insurance Journal. NYC Sues Motoclick Delivery App for Wage Theft

Withdrawing Legal Defense for Eric Adams

On March 17, 2026, Corporation Counsel Steve Banks filed a motion to withdraw the city from representing former Mayor Eric Adams in a civil sexual assault lawsuit. Lorna Beach-Mathura had sued Adams under the 2022 Adult Survivors Act, alleging that in 1993, while both worked for the New York City Transit Police Department, Adams sexually assaulted her and demanded sexual favors in exchange for career help.17Politico. Eric Adams Is Set to Lose City-Funded Lawyers in Sexual Assault Case

The administration argued Adams was not entitled to city-funded defense because he was “not acting within the scope of his city employment” at the time. A city attorney told the court the decision reflected a “fresh set of eyes” review and was not political. Adams denied the allegations and said he did not remember meeting the plaintiff. His private attorney, Alan Samuel Futerfas, called the withdrawal politically motivated and sought to have the city fund Adams’ defense through Quinn Emanuel Urquhart & Sullivan instead.18Courthouse News. NYC Balks at Taxpayer-Funded Defense in Eric Adams Sex Assault Case

Justice Brendan Lantry heard arguments on April 22, 2026, but did not immediately rule. The city’s law department also said it would stop funding representation for two close Adams allies in separate matters.19The Guardian. Mamdani Administration Moves to Drop Eric Adams Assault Suit Defense

The East Village Shelter Lawsuit Against the City

The administration has also been sued. In April 2026, East Village residents organized as VOICE (Village Organization for the Integrity of Community Engagement) filed suit in Manhattan Supreme Court to block the city from relocating its main intake shelter for homeless men from a facility near Bellevue Hospital to a city-owned building at 8 East Third Street. The city had announced closure of the 30th Street location in March 2026, citing dangerously poor conditions, and planned to move 117 short-term intake beds to the East Village site, which had operated as a men’s shelter in the 1980s.20New York Times. Bellevue Homeless Shelter Lawsuit

Plaintiffs argued the relocation was rushed, bypassed required public hearings and environmental review, and improperly relied on an emergency declaration for a situation that was not a true emergency. The city responded that Bellevue conditions were unacceptable and that it had an urgent duty to ensure safe shelter.21The National Desk. New Yorkers in the East Village Sue Mamdani to Stop Relocation of Homeless Shelter

Justice Sabrina Kraus initially issued a temporary restraining order that halted the move for over a month, then dismissed the lawsuit on June 10, 2026. Kraus ruled the city had provided a “rational explanation” for the relocation and that the renovations and use change were not substantial enough to trigger mandatory land use review, noting that the project did not require a new certificate of occupancy. The city had already invested $1.3 million in renovations, and ADA compliance work was underway at the time of the ruling.22New York Post. East Village Residents Lose Bid to Stop New NYC Homeless Shelter

VOICE plaintiff Trisha Goff said the group was “deeply disappointed” and “outraged that the City has chosen to hide behind legal technicalities.” The group’s attorney, Randy Mastro, said he planned to appeal. As of mid-June 2026, no appeal had been formally filed, and the city was cleared to proceed with the relocation, though no start date for intake operations at the new site had been announced.23Our Town NY. Judge Tosses Lawsuit Trying to Block East Village Homeless Shelter

Where the Cases Stand

The A&E settlement is final but a related tenant suit at La Mesa Verde continues. The $31 million Bronx judgment has been entered and a restructuring officer installed, with disbursement timing unresolved. The Seth Miller nuisance ruling has been issued, with compliance monitoring ongoing. The Pinnacle bankruptcy intervention failed at the January 8 hearing. The Fair Workweek settlements are in the payout phase, while the QSR Management petition and the Motoclick suit are active. The Adams defense-withdrawal motion is submitted and awaiting a ruling. The East Village shelter suit has been dismissed, with a possible appeal pending.