Teachers Management Loses Bid to Move Trial to Federal Court
A federal judge in Los Angeles has denied a bid by Teachers Management & Investment Corp., the Newport Beach company that raised about $1 billion from California teachers, to move a lawsuit filed against the company, an attorney said Monday.
On Aug. 23, four teachers sued TMI in Orange County Superior Court alleging that the company lost $100 million in investor funds through fraud and racketeering. The suit asks that a receiver be appointed to seize whatever assets remain at the company, which has sold real estate partnerships to 60,000 educators.
Earlier this month, TMI sought to have the case moved to federal court in Los Angeles, but the action was denied by U.S. District Judge Ronald S. Lew.
A spokeswoman for TMI confirmed the action but said company officials had no comment.
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