Effect of pending litigation

RUN.

Its just not something you want hanging over your head.

Not enough information. What kind of litigation? What's the worst potential liability, and what percentage of that could you potentially be accountable for? It may be a risk you can fairly easily quantify.

How serious is the litigation? How many units to share in the cost? If you are intending to get a mortgage, do you know if banks will lend in the building given the various goings-on?

This sounds like a disaster and not something most people would willingly take on. If it's a unique apartment that you love like no other and the answers to the above are "not serious," "a lot," and "yes," then perhaps consider an offer at a serious discount to fair market value to compensate for the costs of the litigation.

The only bright side is that I doubt this coop will ever make the same mistake again!

An unpaid judgment is a lien on real property, which is what a Coop is in the hands of its Coop
Corporation. The rights of ownership of coop shareholders are subordinate to the liens of judgment
creditors. That means any judgment received by any litigant must be paid in full or its holder can
foreclose on and sell the Coop's building. If judgment is small and/or building is very large the
pendency of the judgment might matter only to the extent of requiring a slightly lower sales price.

somewhereelse is correct. The board is neglecting their duties in overseeing the managing agent.

My co-op is currently involved in litigation with a shareholder that the board is trying to evict. This has been going on for a while and from what I hear the legal costs are approaching 6 figures.
However, it seems like they are also choosing to deny the existence of such litigation for new sales and we're wondering if this could somehow hurt us if a new shareholder is told that there is no pending litigation, and then he/she finds out that there is.
Could the "Business Judgment Rule" be applied here, arguing that the co-op is acting to protects its own interests?

why was a shareholder evicted?

In my experience coop boards will do whatever thy feel like and hide behind the Business Judgement Rule.

re: shareholder eviction it was allegedly for renting a bedroom on airbnb

For someone looking to get a mortgage, lenders ask about existing lawsuits.

If proprietary lease has a provision allowing the co-op to terminate the lease., then eviction is far less costly.

@streetsmart, that was my concern above, lawsuits are ongoing, lenders asked about existing lawsuits, co-op said "NO"

Many banks are less concerned about eviction related litigation- though of course every situation is different.

streetsmart-

Just about every coop has language which you can do a Pullman Eviction off of.

must be disclosed under "special facts" rule of Swersky v. Dreyer & Traubm 219 AD2d 321, 327 (1st Deo't)