A group of Oklahoma-based companies accused retail-focused real estate investment trust Simon Property Group Inc. of waging "an anticompetitive campaign" to take down their competing mixed-use project in Oklahoma City.

In a suit filed Tuesday in Oklahoma federal court, the companies accused the REIT, its Chairman and CEO David Simon and other related parties of attempting to undermine the OAK project, a development that includes retail, residential and office space. Simon Property Group's nearby Penn Square Mall is a major business competitor.

"Rather than fairly compete with OAK for retail tenants and customers by investing in Penn Square Mall to spur interest in Oklahoma City, defendants have abused SPG's monopoly power to prevent prominent retail brands from opening stores at OAK or, in some cases, from opening stores anywhere in Oklahoma City," the companies claimed.

The entities that filed the suit — Veritas Development LLC, NWPF LLC and NWPF subsidiaries Oak Land and Development LLC, Oak Phase I Property Owner LLC, Oak Hotel Owner LLC, Oak Block 2 LLC, Oak Block 3 LLC and Oak SE Corner LLC — said they've been developing the OAK project for over 10 years, but Simon Property Group is trying to "destroy" it by engaging in anticompetitive tactics.

"Among other conduct, defendants have used SPG's vast portfolio of properties to restrain tenants' choices, including by offering prospective tenants that are considering leasing space at OAK preferred terms or 'package deals' involving leases at SPG properties in other states that are conditioned on the prospective tenant either leasing or renewing space at Penn Square Mall, or blocking prospective tenants from leasing space at any competing shopping center in Oklahoma City," the companies said.

Simon Property Group also tried to make the Oklahoma City Council shoot down Veritas Development's "requested zoning changes" in 2019, according to the lawsuit. The REIT also scared away anchor tenants like restaurant chains North Italia and Culinary Dropout from the OAK project, the companies claimed.

The OAK development started talking to North Italia and Culinary Dropout owner Cheesecake Factory Inc. in October 2022 about the restaurant chains becoming tenants, according to the complaint. The negotiations led to Cheesecake Factory making plans to open North Italia and Culinary Dropout locations at the project in 2025 and 2026, respectively, the suit said.

But when the REIT learned about these plans, it tried to force Cheesecake Factory to ditch the OAK project for the Penn Square Mall, the companies claimed.

"On information and belief, [Cheesecake Factory] initially rebuffed defendants, notifying defendants in or about January and/or February 2025 that it was not interested in leasing space at Penn Square Mall," the suit said.

"On information and belief, defendants responded by using SPG's enormous market power to force [Cheesecake Factory] to suspend its lease negotiations with OAK and enter a contractual investigation period to further evaluate potential locations at Penn Square Mall," the companies continued. "As a result, in April 2025, [Cheesecake Factory] informed plaintiffs that further discussions regarding its planned locations at OAK would be delayed as it investigated options to instead open a new North Italia location at Penn Square Mall."

In July, Cheesecake Factory told the plaintiff companies that it was still going to open North Italia and Culinary Dropout locations at OAK, according to the complaint. But the restaurant eventually gave in to Simon Property Group's demands and told the OAK companies in September that it wanted to open a North Italia spot at the Penn Square Mall instead, the suit said.

"As a result of defendants' coercive conduct, plaintiffs' negotiations with [Cheesecake Factory] were terminated, and plaintiffs were unable to consummate a final lease agreement for North Italia at OAK," the companies claimed. "The loss of North Italia and likely Culinary Dropout as anchor tenants was devastating for OAK."

The LLCs also pointed to prior antitrust investigations and litigation against Simon Property Group, such as an antitrust probe the New York Attorney General's Office launched into the company in 2017 and eventually settled.

Counsel for the companies, John C. Hueston, told Law360 Real Estate Authority on Wednesday that Simon Property Group is unfairly undermining its competition.

"As alleged in the complaint, Simon Property Group has a history of abusing its enormous market power to hurt competitors and consumers," Hueston said. "OAK and Oklahoma City are only its latest victims."

"Through this lawsuit, OAK is standing up to that bullying and seeking to repair the enormous damage Simon has already caused," he also said.

However, in a Wednesday statement sent to Law360, a Simon spokesperson slammed the suit.

"This is a meritless and fictional lawsuit from a competitor that is struggling to lease space," the spokesperson said. "Penn Square has competed lawfully for tenants, and it is those tenants that have the power to select where they open stores."

"We will continue with our plans to deliver exciting new tenants at Penn Square while defending ourselves vigorously from these baseless claims," they added.

Simon Property Group's counsel information wasn't immediately available.

The OAK companies are represented by M. Richard Mullins and Andrew J. Morris of McAfee & Taft APC and John C. Hueston, Marshall A. Camp, Justin M. Greer and Raymond Magsaysay of Hueston Hennigan LLP.

The case is Oak Land and Development LLC et al. v. Simon Property Group Inc et al., case number 5:25-cv-01444, in the U.S. District Court for the Western District of Oklahoma.