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Douglas Elliman’s board urged Howard Lorber to step down

Online Niel October 28, 2024

Howard Lorber’s sudden exit from Douglas Elliman last week was the result of concerns about the company’s workplace culture.

The sudden departure of the CEO and chairman came at the urging of the board over concerns about the company’s workplace culture and an investigation spurred, at least in part, by allegations of sexual assault against two of its top former brokers, brothers Oren and Tal Alexander. THE Wall Street Journal reported. Elliman’s shaky financial streak also contributed to the board’s concerns.

The results of the investigation remain unknown.

An Elliman spokesman declined to comment on the board’s activities. The firm argued that Lorber’s withdrawal was not based on a disagreement with the company in a filing Tuesday with the Securities and Exchange Commission.

A special board-led committee, led in particular by David Chene, led the review. Chene joined the company’s board in July after his firm, Kennedy Lewis, loaned Elliman $50 million.

The investigation was the company’s second internal investigation in recent months, sources told the Journal. The first was led by the company’s outside attorney, Marc Kasowitz, but the board expressed concern about the review’s findings because of Kasowitz’s longtime friendship and business relationship with Lorber.

“Our firm was preparing to defend the company against potential claims,” Kasowitz told the Journal in a statement. “Any suggestion that by doing so we would be less aggressive or effective in finding the true facts because of our longstanding personal and business relationship with Mr. Lorber is nonsensical and the exact opposite of the truth.”

The allegations against the Alexander brothers surfaced the following June The real deal It first reported two lawsuits accusing Oren and his twin brother, security firm executive Alon Alexander, of raping two women in New York more than a decade ago. Weeks later, Tal was sued for rape.

Since then, more than a dozen women have come forward with allegations against one or more Alexanders. Among them were two Elliman brokers, Tracy Tutor and Jessica Cohen, who accused Tal and Oren of drugging them in separate incidents.

An FBI task force on child exploitation and sex trafficking has been interviewing women in recent months because of the allegations against the Alexander family.

Lorber was aware of “at least one incident” in which Tal and Oren drugged an Elliman agent, the New York Times reported in July, but a company spokesman denied any incidents were related to the brothers and said no has any formal complaint been filed.

The Alexanders, who left Elliman to launch their own brokerage, Official, previously denied the allegations.

“Their employer also said, unequivocally, that no complaints were ever made to human resources about the brothers,” Deanna Paul, Tal Alexander’s attorney, told the Journal.