A group of 35 foreign investors who sunk a total of $18.5 million into the Northern Beef Packers plant in Aberdeen, S.D., has sued the state of South Dakota. The suit claims that the state officials misrepresented that the project was financially sound. He suit seeks to recover the full investment of $18.5 million, reports The Capital Journal.
The investors' lawsuit claims that Northern Beef Packers in Aberdeen did not have adequate financing to generate revenue or support additional financing and was already plagued by years of delays. It seeks to recover the $18.5 million invested into the plant.
"The project did not have any favorable or competitive position and did not have sufficient capital to commence operations and generate revenue," the lawsuit said.
The suit was filed against the state’s economic development arm, the SD Investment Fund LLC 6, and SDRC Inc., a private company that helped solicit foreign investors. The company opened in 2012 after several days but was forced to shut down due to a lack of cattle. The plant was purchased and has recently opened under new ownership.
Source: The Capital Journal