Real Property-Real Estate Development-Misappropriation of Investment-Fraud

Staff Report//July 1, 2026//

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Defendants moved to partially dismiss plaintiffs’ complaint, while plaintiffs cross-moved for leave to amend. Plaintiffs alleged that they invested money in defendants’ real estate development project, but that defendants misappropriated the investment, causing contractors to go unpaid and necessitating further investment that diluted plaintiffs’ interest. Plaintiffs also alleged that defendants failed to disclose various material facts. Defendants contended that plaintiffs failed to plead fraud with the requisite particularity.

Where defendants failed to show that plaintiffs’ proposed amendments were futile, the court exercised its discretion to grant plaintiffs leave to amend.

Plaintiff’s motion for leave to amend granted, defendant’s motion to dismiss denied.

Solera Multifamily, LLC v. Tegethoff (MLW No. 85005/Case No. 4:25 CV 1877 JMB – 10 pages) (U.S. District Court, Eastern District of Missouri, Bodenhausen, J.)