A group of landowners alleged that a Silicon Valley-backed company, Flannery Associates LLC, employed sneaky maneuvers and unfair tactics in its ambitious endeavor to construct a “sustainable-secret” city in the northeastern outskirts of San Francisco.
The Silicon Valley lawsuit
These allegations came to light as part of a lawsuit initiated by Flannery Associates in May. The company in Silicon Valley alleges that a consortium of farmers conspired to inflate their land values by a staggering $170 million. However, the landowners vehemently deny these accusations and are seeking the dismissal of the lawsuit.
The most detailed account of the landowners’ grievances against Flannery to date emerged in a report on a conference held by both parties in September. The company, which boasts support from prominent figures like former Sequoia Capital Chairman Mike Moritz, LinkedIn co-founder Reid Hoffman, and venture capitalist Marc Andreessen, now faces a barrage of allegations from the defendants.
Unfair tactics
According to the court filing, the landowners assert that Flannery used a variety of unfair tactics, coercive strategies, including forcing property sales by evicting farmers and terminating leases. Moreover, the company is accused of misleading landowners and utilizing the threat of costly litigation to compel them into selling their properties.
Ambitious project
The company’s ambitious project, dubbed “California Forever,” envisions a sustainable, walkable, and environmentally friendly community set to generate thousands of jobs.
It was unveiled in late August by prominent figures and is spearheaded by Jan Sramek, a 36-year-old former Goldman Sachs trader. Despite its visionary goals, the project has faced resistance from local city leaders and politicians, who have voiced concerns regarding the transparency of the entire process.
The battle between the landowners and Flannery Associates adds another layer of complexity to this high-stakes endeavor.
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