That speaks to where venue would lie in New York, but it still doesn't answer the jurisdictional quesiton. I haven't resarched NY law, but there are some fundamental constitutional due process issues involved.
You are absolutely correct. Not only do none of the parties have any nexus to NY but none of acts which presumedly make up the lawsuit occured there either. Very serious jurisdictional issues here. I don't even see how a Federal Court would have jurisdiction.