Silicon Valley-Backed Company Accused of Unfair Tactics in Land Acquisition Lawsuit
A group of landowners in California have accused Flannery Associates LLC, a Silicon Valley-backed company, of using unfair and manipulative tactics to force farmers to sell their land in order to build a sustainable city. The details of these allegations emerged as part of a lawsuit filed by Flannery in May, in which they claimed that farmers conspired to inflate the value of their land. The landowners deny these claims and are seeking to have the lawsuit dismissed.
According to court documents, the landowners allege that Flannery used strong-armed tactics, including pitting family members against each other, to coerce farmers into selling their land. They claim that the company forced property sales by evicting farmers and terminating leases, misled landowners, and used the expensive litigation process to pressure them into selling.
One particularly egregious alleged incident involved a family of eight landowners, with seven wishing to continue farming and one wanting to sell. Flannery allegedly purchased the one-eighth share from the individual who wanted to sell and proceeded to sue the other seven family members to obtain their remaining shares.
So far, Flannery Associates LLC has spent approximately $800 million to purchase over 52,000 acres of agricultural land, making it the largest landowner in the area. They are seeking $510 million in damages from the landowners, triple the amount they claim was inflated due to price fixing.
The company’s plans to build a new city, called California Forever, have faced backlash from local leaders and politicians who are concerned about the lack of transparency in the process. California Forever aims to be a walkable, green community that creates thousands of jobs, and it is backed by prominent figures such as Mike Moritz and Reid Hoffman.
