Vermont Settles EB-5 Lawsuits, Pays $16.5M to Defrauded Investors
The state of Vermont has agreed to pay up to $16.5 million in a global settlement to resolve legal claims made by defrauded investors in the Northeast Kingdom development projects centered around Jay Peak Resort. The settlement involves the state, a federal court-appointed receiver, and 64 people who sued Vermont. The agreement aims to settle all pending and potential lawsuits against the state by the approximately 850 investors in the projects. The settlement is conditioned on obtaining a bar order, which still needs approval from the federal court. The state previously reached a separate settlement with eight defrauded Jay Peak investors for an undisclosed amount. The settlement would prevent additional trials and keep officials from having to testify about their knowledge of wrongdoing.