Sexual Harassment Lawsuit Against Cedar Realty CEO Dismissed
A New York State Supreme Court judge ruled the claims should be decided through arbitration.
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.
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.
In February 2018, Snow Park Capital reached an agreement with Cedar Realty to end its activist campaign.
Referencing Mozzachio’s pre-existing arbitration, the judge’s order states that “The arbitration clause in the employment contract entered into by the plaintiff encompasses all claims contained in the complaint.”
Mozzachio referred GlobeSt.com to her attorney, Michael DiChiara, a member of the firm Krakower DiChiara. He did not provide comment by the time of the filing of this story.