- Vermont Supreme Court rules in favor of Stowe Aviation, allowing continuation of its lawsuit against state agency over EB-5 misrepresentations.
- Collapse of EB-5 investment program derails Stowe Aviation’s expansion plans at Morrisville-Stowe Airport.
- Allegations of inadequate oversight lead to significant financial losses and the cessation of airport operations, highlighting ongoing state scrutiny.
STOWE — The Vermont Supreme Court has ruled in favor of Stowe Aviation, allowing the company to proceed with its lawsuit against the Agency of Commerce and Community Development.
The decision overturns lower court rulings that had dismissed Stowe Aviation’s claims of regulatory oversight misrepresentation connected to the state’s EB-5 investment program.
Stowe Aviation, which took over operations at Morrisville-Stowe Airport in 2014, aimed to expand the airport and introduce commercial flights with funding from the EB-5 program and other sources.
However, the EB-5 program collapsed following a massive fraud scandal, significantly affecting Stowe Aviation’s project.
The company alleges that the commerce agency promised a “gold standard” of oversight that never materialized, leading to financial losses and the eventual cessation of their airport operations in 2021.
The Supreme Court’s decision highlighted an “abuse of discretion” in the handling of the company’s complaint, paving the way for a renewed legal challenge.
This ruling comes as the state’s EB-5 program faces ongoing scrutiny, with a recent auditor’s report criticizing its regulation. Meanwhile, the Agency of Transportation has struggled to find a new operator for the Morrisville-Stowe Airport, further complicating the situation.
