MERS Faces Lawsuit Over $140 Million Loss in Hawaiian Coffee Venture
LANSING, MI – December 2, 2025 – The Municipal Employees’ Retirement System (MERS), a Lansing-based organization responsible for managing retirement funds for Michigan local governments, is facing a lawsuit alleging significant financial losses and fraudulent activity related to a coffee-growing operation in Hawaii. A complaint filed Monday in Polk County, Florida, details accusations of a $100 million loss on the venture and the alleged deception of a lender out of $40 million before the project was ultimately abandoned.
the lawsuit accuses MERS and other involved parties of fraudulent misrepresentation,negligent misrepresentation,and conspiracy. According to the filing, MERS actively misled investors regarding the viability and potential returns of the Hawaiian coffee farm.
MERS currently manages the retirement benefits for over 1,300 Michigan cities,townships,and other local government entities,overseeing billions of dollars in assets. The alleged loss raises concerns about the stewardship of these public funds and the potential impact on the retirement security of Michigan public employees.
Details emerging from the lawsuit suggest the coffee venture, initiated several years ago, faced considerable operational and financial challenges. Despite these difficulties, MERS allegedly continued to solicit investment from a Florida-based lender, presenting a misleadingly optimistic picture of the projectS prospects.
The lawsuit claims that MERS ultimately abandoned the hawaiian coffee farm, leaving the lender wiht significant financial losses. The plaintiffs are seeking damages to recover the $40 million investment, as well as punitive damages for the alleged fraudulent conduct.
MERS has not yet issued a formal response to the lawsuit, but a spokesperson confirmed the organization is aware of the legal action and is reviewing the allegations. Further inquiry is expected to reveal the full extent of the financial losses and the details surrounding the alleged misrepresentations. This developing story will be updated as more details becomes available.
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