IIUSA’s monthly litigation summary for June 2019 is now available to members. The monthly feature highlights the most topical EB-5 litigation cases taking place in the courtrooms. Members can view full case updates and access the court documents from the EB-5 Litigation Library on IIUSA’s Member Portal (click here).
Bi v. McAuliffe – 4th Circuit Court of Appeals.
In what may be the first published appellate decision related to EB-5 the Fourth Circuit affirmed the district court’s dismissal of investors’ complaint on June 12, 2019. Plaintiffs were EB-5 investors in a project headed by Mr. McAuliffe and Anthony Rodham. They sued Mr. McAuliffe and Mr. Rodham for fraud (and other causes of action). The district court found that the investors failed to adequately state their fraud claims because they could not identify which statements they relied on.
Twenty-seven Chinese citizens invested capital in GreenTech Automotive Partnership A-3, LP, which loaned funds GreenTech Automotive (“Green Tech”). Green Tech’s project was production of a hybrid electric vehicle. In connection with their investment, investors received a PPM, a subscription agreement, a limited partnership agreement, a construction loan agreement, and a power of attorney agreement. Each of these documents was written in English with no Chinese translation, and the plaintiffs neither reviewed them nor had them translated…Read the Full Summary