Helmsley Hands Over Firm to End Lawsuit

Leona Helmsley has given control of the Helmsley-Spear Inc. real estate management company to two business associates of her late husband Harry, settling a 1995 lawsuit, a spokesman confirmed Friday.

The associates, Alvin Schwartz and Irving Schneider, were longtime employees who filed suit charging that she owed them millions of dollars in back pay. They also claimed she forced the company into millions of dollars of debt.

A spokeswoman for Helmsley said the three had “resolved all disputes between them” and agreed to give the two men control of the company, which they had an option to buy after Harry Helmsley died.

Helmsley, a powerhouse in New York real estate, died in January.

In a statement, Schneider said his association with Harry Helmsley was “the most positive business relationship” of his life, and he regretted any negative statements about the Helmsleys that may have been in legal papers in the litigation.

Helmsley-Spear is the one of New York City’s largest real estate management companies, and its properties include the Empire State Building and One Penn Plaza.

Leona Helmsley is still in a legal battle with Peter Malkin, another of her late husband’s associates, over several buildings managed by Helmsley-Spear.