Investors allege fraudulent misrepresentation over funding of energy project

On Behalf of | Nov 6, 2019 | Civil Litigation |

Investors in an Iowa biogas project are claiming that developers didn’t have the funding — $15 million — they claimed they had. The investors’ lawsuit alleges fraudulent misrepresentation, breach of contract and theft, among other allegations.

Reports about the pending litigation indicate that some of the infrastructure for the $25 million facility in question was indeed constructed, but at some point the developers simply did not have the money to proceed, which was news to the investors.

There are also apparently concerns from local residents about the facility and its proximity to a creek, and speculation that potential pollutants could seep into groundwater because of karst features in the area.

When civil litigation arises between former business partners, the legal process can be contentious and time-consuming. Parties face an important business decision: whether to push the case all the way to a trial, or attempt to settle the case through out-of-court negotiations.

If you and your company are facing similar decisions, the importance of having experienced legal counsel on your side cannot be overstated.