Kimco Realty (KIM) is being sued by Drip Coffee, which accuses the developer of open-air shopping centers of "systemic fraudulent business practices," the coffee brand said Monday.
Drip Coffee alleged Kimco Realty signs multi-year leases with tenants while simultaneously planning to evict those tenants at a later date to make room for larger retailers.
The lawsuit alleges Drip Coffee was used as a "pawn" to provide short-term rent to Kimco, while it was planning a redevelopment and demolition project of more than 100,000 square feet of the shopping center. Drip Coffee alleges Kimco committed fraud by soliciting leases they knew they could not fulfill.
"Kimco business practices have the company enter into agreements the company has no intention of keeping," Drip Coffee president Taylor Schear said. "Their practices are driven by greed despite the businesses and jobs destroyed, and the loss of the revenue and investments for the businesses that enter into contracts with Kimco in good faith."
Kimco Realty didn't immediately respond to a request for comment from.
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