HGT Law Obtains A Judgment For Over $10 Million On Behalf Of Legend International Investment LP

On March 17, 2026, HGT Law prevailed in a derivative action brought on behalf of Legend International Investment, LP (“Legend LP”) in the Superior Court of the State of California, County of Riverside, obtaining a judgment for over $10 million. Legend LP was formed to receive foreign investor money under the EB-5 immigrant investor program and to develop a commercial business center in Riverside. HGT Law represented a limited partner in bringing claims derivatively on behalf of Legend LP, alleging that Legend LP’s general partners had unlawfully enriched themselves, their principals, and their affiliates at the expense of the partnership.

Following an eight-day trial that concluded on October 15, 2025, the Court found that Legend LP’s general partners, Defendants American Everglow Regional Center and Legend Investment Management, LLC (the “General Partners”), along with their principals, Defendants Steven Qin, Hua Guo and Yue Zhang, systematically defrauded the partnership. Among other things, the Court found that the General Partners were required to contribute land worth $6 million, but contributed land worth only $527,000. Additionally, the Court found that the defendants siphoned partnership money through self-dealing contracts, unauthorized personal payments, and transfers to affiliated entities and persons.

The Court ruled in favor of Legend LP on all five causes of action: breach of contract; breach of fiduciary duty; aiding and abetting breach of fiduciary duty; unjust enrichment; and receipt of stolen property under California Penal Code section 496. The Court entered judgment against the General Partners and the individual principals, jointly and severally, for compensatory damages in the amount of $10,326,636. Restitution was also ordered against each defendant based on the amount by which each defendant was unjustly enriched, totaling $9,970,136. Treble damages under California Penal Code section 496 were also awarded against Defendant Zhang in the amount of $936,000.

A copy of the California Superior Court's judgment can be found here. A copy of the Court's Statement of Decision can be found here.

HGT Law previously obtained an order appointing a receiver over Legend LP, as noted here.

For more information about the HGT Law's derivative lawsuits practice and EBF-5 investors practice, please contact us at (646) 453-7288 or via email at info@hgtlaw.com.