Michigan Rising Action Files Suit Against MEDC To Release Concealed Documents

After acknowledging the existence of more than 1,200 records related to a blacklisted company spyware company, then taxpayer-paid agency went dark

 Lansing, Mich. – Michigan Rising Action (MRA), in conjunction with the Mackinac Center for Public Policy, filed suit against the Michigan Economic Development Corporation (MEDC) for repeated failure to follow FOIA law following a MRA inquiry into its dealings. 

In June, MRA inquired whether the shadowy agency had ever made contact with a blacklisted military spyware company, Hesai Technology, or its  Farmington Hills-based shell company, American Lidar. After failing to respond to the request for nearly a month,  MEDC responded that it had as many as 1,226 records related to the request and requested a good faith payment to begin what the agency estimated would be a 16-hour effort to process the request. MRA promptly made the payment on July 2. 

More than two months later, the agency has gone completely dark. 

“This is a willful effort to conceal from public inspection activities and discussions the MEDC is having that the public may not like,” said Abby Mitch, executive director of Michigan Rising Action. “This is a fair concern, as MEDC’s two flagship investments – Gotion and Ford CATL – have received nationwide public backlash. But the simple fact is that it should not take the threat of a lawsuit to get MEDC to follow the law.” 

The troubled agency has been beset by scandal in its deals  and is best known – not for its economic success for Michigan taxpayers – but for shrouding itself in secrecy and doubt. The MEDC’s conduct in relation to MRA’s request clearly violates Michigan’s transparency laws.  

While public bodies are permitted to issue time estimates for FOIA requests, they must be made in good faith and should reflect the public body working diligently to complete the request. The MEDC’s prolonged delays and lack of communication suggest, at best, a cavalier attitude toward transparency and, at worst, a willful effort to conceal from the public how it spends taxpayer dollars. 

“The lack of transparency shown by the MEDC in this case is deeply troubling,” saidSteve Delie, director of transparency and open government at the Mackinac Center. “Public records belong to the public. They should be readily accessible in a reasonable time period and at a reasonable cost. The delays our client encountered make it clear that the MEDC is falling short of that standard.”

View the full complaint here. A brief timeline of events and summary of the complaint against MEDC follows below. 

Timeline: 

• On May 29, 2024, Michigan Rising requested documents from MEDC related to American Lidar Inc.
• MEDC responded on June 20, 2024, with a fee estimate of $593.48 and a processing time estimate of sixteen hours. 
• Michigan Rising paid a 50% deposit on July 2, 2024. Despite this, MEDC did not produce any documents and failed to respond to follow-up inquiries. 
• MEDC only acknowledged receipt of the payment on August 29, 2024, but did not provide a completion date or further progress updates. This is a direct violation of Michigan’s transparency laws and only raises questions about what kind of deal the MEDC has struck. It also appears that Michigan taxpayer money could be flowing to a company that potentially places America’s national security at risk.

Parties, Jurisdiction, and Venue:

• Plaintiff: Michigan Rising Action, a Michigan nonprofit based in Ingham County.
• Defendant: Michigan Economic Development Corporation, a government entity also located in Ingham County.
• Jurisdiction: Court of Claims has jurisdiction under MCL 600.6419(1)(a).

Violations of the Freedom of Information Act:

• MEDC did not respond within the required five business days and failed to provide records within the estimated time frame.
• MEDC’s delay and lack of communication are deemed unreasonable and a violation of FOIA. Under the law, unreasonable delay is considered a denial.
• According to FOIA, the public body must make “best efforts” to estimate the time frame for fulfilling requests. MEDC’s failure to provide records in a timely manner and its delayed responses indicate non-compliance.

###