One from the U.S. Court of Appeals for the First Circuit.
In In re Financial Oversight & Management Board for Puerto Rico, No. 22-1048 (Nov. 22, 2022), the court affirmed the district court’s 12(b)(6) dismissal of a takings claim because the government didn’t actually force the plaintiff credit unions into buying what the complaint alleges are “worthless government-issued securities,” even where “the defendants knew – but did not disclose – that these would be losing investments given the precarious state and dire financial situation in which Puerto Rico found itself at the time.” Slip op. at 1.
Conned into purchasing junk bonds? That’s on you.
This is another Takings Clause claim arising out of the Puerto Rico governmental bankruptcy. [Disclosure: we represent some of the property owners/Respondents in that other matter, now at the cert stage in SCOTUS.] The complaint alleged that in a series of meetings over





