Paxton, state agency fight over EPIC City lawsuit

Texas Attorney General Ken Paxton filed a lawsuit targeting the planned Muslim-centric development, originally known as EPIC City (now The Meadow), alleging violations of Texas securities law. However, the Texas State Securities Board (SSB) conducted its own investigation and concluded that the developers did not violate the Texas Securities Act, stating the investments were not considered securities under state law. The SSB informed Paxton’s office of its findings prior to the lawsuit’s filing and suggested potential claims under the Texas Deceptive Trade Practices Act instead.

The dispute centers around the $80,000 shares investors purchase to reserve lots, which Paxton claims are unregistered securities. The SSB maintains these are limited partnership interests that do not qualify as securities based on their investigation. Community Capital Partners, the development group, stated the lawsuit “contradicts” the SSB’s findings and emphasizes its commitment to transparency and legal compliance.

Legal experts have expressed confusion over the SSB’s determination, given that limited partner interests are typically considered securities under Texas law. Governor Greg Abbott has directed state agencies to investigate EPIC, with some investigations already settled or closed, while others remain open. The project aims to be a 1,000+ home development with various community facilities in Collin and Hunt counties.

(Source：Dallas News)