MEDC asks judge to dismiss suit from scandal-embroiled nonprofit over terminated state grant

The Michigan Economic Development Corporation, or MEDC, has asked a state Court of Claims judge to dismiss a lawsuit filed in May by Global Link International, which has alleged the state illegally terminated a $20 million grant to the nonprofit.

The grant to Global Link was cancelled in March 2025 over Global Link’s failure to comply with multiple stipulations in the grant, including failing to file annual reports. The motion for summary disposition filed by the MEDC cites a delay in filing the lawsuit as making the entire lawsuit “untimely.”

“GLI’s lawsuit does an about-face and seeks to revive long-ago waived and released claims,” the motion states. “This court should not allow it to do so.”

However, even beyond the procedural claims of what the MEDC deems an unreasonable delay to file the lawsuit, the agency also argues that the cancellation of the grant was also legally sound on its own.

Danielle Emerson, the Public Relations Manager for the Michigan Economic Development Corporation, said as much in a statement to the Michigan Advance.

“This case is baseless from both a procedural standpoint, as well as on its merits,” Emerson said. “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.”

Global Link’s lawsuit alleges wrongdoing by the MEDC on five counts, including interference with business relationship and expectancy and a breach of contract.

The CEO of Global Link, businesswoman Fay Beydoun, was criminally charged by Attorney General Dana Nessel in May over alleged misuse of those state funds, including counts of conducting a criminal enterprise, forgery, larceny by conversion — more than $20,000, six counts of larceny by conversion — $1,000 to $20,000 and seven counts of uttering and publishing.

MEDC used those 16 felony charges against Beydoun to further its argument that the grant was rightfully cancelled. 

In April, Global Link accepted the termination, and the MEDC motion cites the nonprofit as expressly writing that “it is not in the interest of the State of Michigan and its taxpayers to prolong this grant relationship.”

As such, the motion argues, the nonprofit waived its claims against the MEDC.

“GLI’s conduct and affirmative representations as to the termination of the Agreement are clear,” the MEDC’s lawyers added. “It cannot now return and assert MEDC breached the contract which termination it clearly accepted.”

The motion also argues that the agency, as it was executing a legislative earmark, has governmental immunity for the claims in Global Link’s lawsuit, as well as disputing the claims of business interference because the MEDC was acting on behalf of the Michigan Legislature and is not a third party to the contract.