GROW MICHIGAN, LLC,
Plaintiff-Appellant,
v.
LT LENDER, LLC; JERRY REINHARDT; JOHN
REINHARDT; BRUCE CAMPBELL; PAUL SHAMO; ROBERT
CAUSLEY; DAMIAN KASSAB; ROBERT DRAKE; SOLYCO,
LLC,
Defendants-Appellees. |
No. 21-2673 |
Appeal from the United States District Court for the Eastern District of Michigan at Detroit.
No. 2:20-cv-11391—Linda V. Parker, District Judge.
Argued: March 10, 2022
Decided and Filed: October 7, 2022
Before: BATCHELDER, NALBANDIAN, and READLER, Circuit Judges.
_________________________
OPINION
_________________________
CHAD A. READLER, Circuit Judge. Grow Michigan (GrowMI) extended a $5,000,000
loan to Michigan-based start-up Lightning Technologies. Lightning eventually defaulted on the
loan. GrowMI believes that Lightning’s default was the result of the actions of individuals and
entities associated with Lightning that intentionally drove the company into the ground as part of
a scheme to seize control of the company.
To recoup the losses, GrowMI sued those allegedly scheming parties for violating the
Racketeer Influenced and Corrupt Organizations Act. GrowMI’s claims, however, rest on its
status as Lightning’s creditor, making its injury derivative of the harm incurred by Lightning.
Because GrowMI does not plausibly allege that it was directly injured by reason of defendants’
alleged racketeering activities, we affirm the district court’s dismissal of GrowMI’s complaint. |