While AT&T takes a lot of heat for their horrific service here in New York, Verizon gets criticized constantly for putting up the most loathed building in the city — which practically sucks the soul out of the skyline (we are looking at it right now).

Located at 375 Pearl Street in Manhattan, the TriBeca Trib reports that the city is now suing Verizon and real estate company Taconic Investment Partners for $53 million. Allegedly the city lost that much money after what they claim were fraudulent dealings.

When they purchased the land and air rights from the city in 1972, "the agreement called for the phone company to give the city $17 million and to build Murry Bergtraum High School. But, the city says, New York Telephone built far more usable space—1.2 million square feet—than it said it would, thereby undervaluing the deal and shortchanging taxpayers."

They claim Verizon covered up illegal construction, and the scheme only came to light in 2007, when the company sold 29 of the 32 stories to Taconic for $172 million (a discounted price the city says the investment firm got as a direct result of Verizon's fraud). Unfortunately, this lawsuit could put an end to the renovation Taconic had planned, as the city is also asking for an injunction. [via Curbed]