On October 13, 2026, Weil won a decisive victory on behalf of client New York City Regional Center, LLC (NYCRC) and its principals when Justice Robert R. Reed of the New York Supreme Court, Commercial Division, granted summary judgment dismissing all remaining fraud and fiduciary duty claims in a long-running dispute originally brought by more than 100 EB-5 plaintiffs. The court held that the Offering Memorandum fully disclosed the investment’s material terms and risks, and that NYCRC’s decisions in managing the Fund and the Loan were made in good faith and protected by the business judgment rule.

Today’s ruling represents a complete victory following an earlier Weil win. In 2018, the court granted dismissal of 11 of plaintiffs’ 17 original causes of action at the motion to dismiss phase. With this decision, the six remaining causes of action are also dismissed, covering common law fraud, aiding and abetting fraud, and derivative breach of fiduciary duty and aiding-and-abetting claims.

The plaintiffs invested in the New York City East River Waterfront Development Fund, LLC, which NYCRC manages, to obtain U.S. permanent residency through the federal EB-5 program. The Fund made a $77 million senior secured loan to finance the redevelopment of the Battery Maritime Building in Manhattan. Plaintiffs sued in 2017 after the project’s developer defaulted and construction stalled, even though, as the court noted, all plaintiffs who pursued permanent residency obtained it for themselves and/or their family members.

In granting the motion, the court held, among other things, that the evidence refuted plaintiffs’ fraud claims because the Offering Memorandum clearly disclosed the material terms and risks in the investment, and plaintiffs represented in their subscription agreements and immigration filings that they had received, read, and understood it. The court also noted that plaintiffs could not show damages for their fraud claim where they received their green cards, and there was no evidence that NYCRC ever guaranteed a return of plaintiffs’ investments in its offering materials. With respect to plaintiffs’ fiduciary duty claims, the court agreed that NYCRC’s challenged decisions were made in good faith to advance the Fund’s investment objective, and that the business judgment rule does not allow plaintiffs to second-guess those decisions with hindsight. The court further dismissed related derivative aiding-and-abetting claims against NYCRC’s principals.

This victory follows a complete Second Circuit win Weil secured in 2024 for NYCRC in a similar EB-5 investor dispute arising out of financing NYCRC arranged for the redevelopment of the George Washington Bridge Bus Station.

The Weil team was led by global Litigation Department Co-Chair David Lender, and included Complex Commercial Litigation Co-Head Greg Silbert and partner Jessica Falk, counsel A.J. Green, and associate Sarah Schnorrenberg. Over the years, other team members included Weil Deputy General Counsel Jessie Mishkin (who worked on this case before her current role) and alumni Melissa Rutman, Rob Swenson, Alea Mitchell, and Brody Sanford.