by Dirk Lammers Associated Press
Thirty-five foreign investors who sunk a collective $18.5 million into a failed South Dakota beef processing plant sued the state on Wednesday, alleging that officials misrepresented that the project was financially sound.
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.
Sioux Falls attorney Steven Sandven filed the suit in Hughes County circuit court against the state's economic development arm and SD Investment Fund LLC 6, the fund created for the investment. Also named are SDRC Inc., the private company that helped solicit foreign investors and its director Joop Bollen.
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Source: Associated Press