Nancy Mozzachio, former COO at Cedar Realty, sued CEO for sexual harassment.

NEW YORK CITY—Cedar Realty Trust announced that its former COO Nancy Mozzachio's sexual harassment lawsuit against its current CEO Bruce Schanzer was dismissed. Judge Richard Velasquez in the New York State Supreme Court in Kings County granted the defendant's motion to dismiss the case and to compel arbitration.

In November 2017, Mozzachio's complaint against Schanzer alleged that for several years, up to the date of her termination on February 12, 2016, Schanzer sexually harassed her. The complaint included graphic descriptions alleging inappropriate conduct such as his commenting both about Mozzachio's breasts and also about oral sex. It accused him of creating a hostile work environment.

Bruce Schanzer, CEO and president of Cedar Realty Trust

In December 2017, Schanzer's motion also sought to sanction Mozzachio. Schanzer asserted she filed a frivolous lawsuit adding scandalous statements to harass him. The pleading stated that in the complaint Mozzachio had not mentioned her previously filed arbitration that involved the same issues. The motion also stated that to maximize its harmful impact the lawsuit was filed around the time when an activist shareholder, Snow Park Capital Partners, was urging Cedar Realty to explore options including a sale.