Lawsuit over Vegas’ All Net Resort and Arena Fails to Gain Traction

The plaintiffs alleged that the company behind the planned sports venue collected significant loans without any intention to deliver on the projectImage Source: Shutterstock.com

A federal judge has thrown out a racketeering lawsuit related to the dysfunctional All Net Resort and Arena project. This decision marks the latest setback in a protracted legal battle over millions in disputed loans and a failed dream of bringing NBA basketball to the Las Vegas Strip. While the plaintiffs could press on with their claims, it is becomingincreasingly evidentthat the proposed venue may never materialize.

The Plaintiffs Alleged a Deliberate Scheme to Defraud Lenders

In a Monday ruling, US District Chief Judge Andrew Gordondetermined that the lawsuit, filed by California-basedTACSIS APCand financier Ken Limson, was filed too late. Gordon noted that the Racketeer Influenced and Corrupt Organizations (RICO) Act had a four-year statute of limitations, closing this legal avenue.

Plaintiffs had accused developers, attorneys, and other entities involved in the project of running a fraudulent scheme that obtained over $2 million in short-term lending to fund the failed arena and resort project. The lawsuit primarily revolves aroundseven loansfrom2018 and 2019. Four of these had already defaulted by the time the fifth was extended.

Limson contends that he received a fractional equity sngake in the project in exchange for his continued financing. All of the loans eventually went bad, while commitments by developers, such as surety bonds to protect the lenders, turned out to be either falsified or nonexistent. According to Limson, his lost sngake in the project was potentially worth several million dollars.

A Key Technical Restriction Proved Pivotal

The plaintiffs first sued inCalifornia state courtlate in 2020, filing a separate RICO suit in December 2024. They named various defendants, including retired basketball playerJackie Robinson, some of his businesses involved in the All Net development, and attorneys involved in structuring the deals. However, their arguments did not convince Judge Gordon.

The court noted that by the time the plaintiffs filed their 2020 case, they were awareof the alleged failure of the surety agreements, starting thefour-year legal clockfor a RICO suit. Although Gordon noted that the plaintiffs could submit anamended complaint by September 2, he cautioned that reviving the case would bealmost impossible due to the statute of limitations issue. 

The plaintiffs knew about the injuries in their complaint more than four years before filing this lawsuit. The plaintiffs’ RICO claim is therefore time-barred.

US District Chief Judge Andrew Gordon

As for the ambitious All Net Arena itself, there islittle hope for the project. Once envisioned as a gleaming basketball and entertainment complex with ambitions to draw in an NBA expansion team, the project now languishes in obscurity. Instead of a grand basketball arena, Las Vegas is left with an empty plot of land, paperwork, and legal wrangling.