Various Thoughts on EB-5 Litigation

EB-5 Class Actions

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Anyone expect to see an increase of class action litigation related to EB-5 investment fraud in the coming years? Cases alleging this seem to come to light in drips every year. There is clearly volatility in the space and that may accelerate latent frauds or fiduciary breaches to come to light.

Chicago EB-5 fraud cases put pressure on Senate Judiciary Chairman Durbin

Tracking EB-5 Litigation

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On the topic of Eb-5 litigation (including cases for money damages), this is an interesting resource to see what is pending or has been previously litigated. I don’t maintain the site so I can’t vouch for accuracy:

EB-5 Litigation Tactics & Options

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If you take some time to go through these cases individually, they are really fascinating from a litigator’s perspective. There are lots of potential tactical options to pursue these case. Numerous federal and state causes of action. They can be pursued as groups, class actions or as individual whistleblowers. The cast of possible defendants is very broad and fact specific. Federal court and state court could be options depending on the circumstances. Of course money damages are available, but the immigration consequences of any resolution also have to be considered.

The impact of fraud/breach of fiduciary duty on the immigrant investors in EB5 cases is horrible, almost inhumane. However, for a plaintiff’s lawyer with a strong interest in immigration and investments, these are VERY interesting cases.

EB-5 Litigation Recoveries

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100% monetary recoveries in fraud suits are not typical. However, the recoveries to immigrant investors in some of these Eb-5 litigations have been impressive. I think the recoveries in these cases in general benefit from a wider net of potential defendants and the availability of some hard assets to pursue.