Frank Hofues, a Nevada hotel owner, agreed to lease the hotel rooms in November 1955. He also agreed to loan the project $2.5 million, with completion now expected by May 1, 1956. However, a class action lawsuit was filed on behalf of shareholders, challenging the loan by Hofues. Shareholders had been told by Tony Cornero that the resort could be completed for $4.5 million. The suit sought to have the Stardust placed into receivership, stating that borrowing an additional $2.5 million would not be in shareholders' best interest. Hofues died shortly thereafter, and it was later alleged that he had failed to refinance the Stardust as agreed. However, attorneys representing the Hofues estate said that his agreement had been terminated by the Stardust board of directors in June 1956.