Lansing − Michigan’s economic development arm has asked a state judge to dismiss a lawsuit filed against it by a controversial grant recipient that alleged the agency inappropriately canceled its $20 million windfall.
The May lawsuit filed by Global Link International came after months of “abusing and misusing a $20 million legislative earmark” and has no merit or standing, the Michigan Economic Development Corporation argued Thursday in a Court of Claims filing.
Global Link International, the state agency wrote, is “seeking to place blame on anyone but itself,” even after its executive director, Fay Beydoun, was charged with 16 felonies related to the group.
“This case is baseless from both a procedural standpoint as well as on its merits,” Courtney Overbey, a spokeswoman for the MEDC, said Friday. “We look forward to making our arguments to dismiss this case in its entirety. MEDC remains committed to transparency, as well as being responsible stewards of taxpayer dollars.”
The initial lawsuit filed by Global Link International came the same day Beydoun was charged in relation to her management of the $20 million grant. Global Link filed the lawsuit in Ingham County Circuit Court, but the MEDC has since moved the case to the Michigan Court of Claims, where suits against the state usually are adjudicated.
Attorney General Dana Nessel’s office has argued Beydoun expensed Tunisian rugs, catering for political events and a forged attorney invoice to the state grant meant for Global Link International, which was formed after the passage of the 2023 fiscal year budget to function as an international business accelerator to attract overseas companies to Michigan.
MEDC terminated the $20 million grant, $10 million of which it had already given to Global Link, in March 2025; and Nessel froze $6.3 million in bank accounts connected to Beydoun in September 2025 as part of the investigation that began in April 2024.
Last month, Global Link alleged in its lawsuit against the MEDC that the agency’s March 2025 termination of the grant infringed on the authority of the Legislature that appropriated the money. In effect, the lawsuit argued, the MEDC interfered in the business relationship by “interposing” itself between Global Link and the Legislature.
Global Links lawsuit alleges tortious interference with a business relationship or, alternatively, breach of contract, unjust enrichment and promissory estoppel. The suit seeks a court order finding the funds must be tendered to Global Link with the MEDC playing no role in the process, as well as damages in an amount greater than $25,000 as well as attorney fees and costs.
But the agency in its Thursday filing noted that when it initially canceled the grant in March 2025, Global Link accepted the termination in writing − only to wait a full year to file a notice of intent to sue over the cancellation.
“GLI’s conduct and affirmative representations as to the termination of the agreement are clear,” the filing said. “It cannot now return and assert MEDC breached the contract which termination it clearly accepted.”
The state in its Thursday response also argued the MEDC maintains governmental immunity from lawsuits like the one filed by Global Link and that it could not have been “interfering” in the grant when it was the Legislature’s designated administrator of the grant.
“MEDC, as the administrator of the legislative earmark, is not a third party to the relationship between GLI and the Legislature,” the filing said. “It does not, and cannot, plead that MEDC did something ‘illegal, unethical, or fraudulent’ by acting consistently with the Legislature’s appropriation.”
eleblanc@detroitnews.com
This article originally appeared on The Detroit News: MEDC wants judge to dismiss ‘baseless’ Global Link suit over $20M grant
Reporting by Beth LeBlanc, The Detroit News / The Detroit News
USA TODAY Network via Reuters Connect
By Beth LeBlanc, The Detroit News | USA TODAY Network
