FCS Advisors, LLC v. Missouri, No. 17-3533 (8th Cir. 2019)
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The Eighth Circuit affirmed the district court's dismissal of an action brought by an investor, alleging that Missouri fraudulently induced a loan between the investor and EngagePoint and illegally discriminated against EngagePoint. The court held that the investor failed to plead fraud with particularity.
The court also held that the investor's unlawful discrimination claims failed because it has failed to identify any impaired contractual relationship under which it had rights, and 42 U.S.C. 1981 does not allow the investor to sue on EngagePoint's behalf. Similarly, the investor failed to state a discrimination claim under Title VI of the Civil Rights Act of 1964.
Court Description: Stras, Author, with Smith, Chief Judge, and Benton, Circuit Judge] Civil case. In action alleging the State of Missouri and the head of its office of administration fraudulently induced plaintiff to make a loan to a vendor performing a redesign of the state's health-benefits programs software, the district court did not err in dismissing the claim as plaintiff's pleading failed to plead fraud with sufficient particularity; with respect to the lender's claim that the state terminated the contract because of animosity to the ethnicity of the vendor's managers in violation of the Civil Rights of 1866, plaintiff could not bring suit on the vendor's behalf; plaintiff's Section 1981 claim failed because plaintiff did not suffer or experience any discrimination; plaintiff did not suffer any discrimination under Title VII.
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