The Vermont attorney general’s office is asking a judge to toss out a lawsuit that alleges the state was complicit in a scheme to defraud EB-5 investors.
In a 100-page filing this week, attorneys for the state refer to the action brought by five EB-investors as a “shotgun” lawsuit with “scattershot” allegations that lacks specifics. The motion to dismiss asserts that the case is barred by the sovereign immunity doctrine, which protects the state and officials against lawsuits.
“Essentially, what you have in this complaint is somebody throwing everything, including the kitchen sink, at the wall, seeing what sticks,” Attorney General TJ Donovan said Tuesday. “In order to go forward, you need a specific allegation of fraud.”