Gogtay/Dixit v. Second Chance, Inc. Lawsuit Dismissed
Lawsuit filed against Baltimore non-profit dismissed with prejudice; plaintiffs sign statement acknowledging damage done to the organization
Baltimore (August 20, 2019) – Second Chance Inc., with attorneys Miles & Stockbridge, announce that the civil lawsuit filed against the organization in October 2017 was dismissed with prejudice in a Montgomery County Circuit Court on August 13, 2019.
As part of the dismissal, the defendants, Nitin Gogtay and Kiran Dixit, signed a statement acknowledging that in the discovery process, Second Chance presented strong, factual defenses to the allegations made in the suit, including that the organization misrepresented the potential tax benefits of their donation to the organization to fraudulently induce them into donating. In the statement, the plaintiffs also admit their claims have caused damage to Second Chance’s reputation that cannot be easily undone.
Read the plaintiff’s full statement here.
At the time of dismissal, no additional Second Chance donors had joined this effort or made similar claims, despite the plaintiffs’ expressed intent to lead a class-action lawsuit against the organization.
“After a long and exhaustive process that has taxed our organization both financially and emotionally, we are relieved to finally have this matter resolved so we can turn our full attention back to our mission of providing job training and workforce development to the Greater Baltimore community,” said Mark Foster, founder and president, Second Chance, Inc. “We were confident the court would agree there was no factual evidence to support Gogtay and Dixit’s claims. We are always honest with our donors about the potential tax benefits of donating a property for deconstruction, and we will continue to encourage future donors to work closely with their appraisers and tax advisors to properly file for these deductions and address any concerns they may have.”
Second Chance completes an average of 300 deconstruction projects each year, skillfully removing structures by taking them apart in the reverse order of construction. This process provides a much-needed sustainable alternative to demolition, as valuable building materials are salvaged for reuse rather than tossed into landfills. In addition, to complete this work Second Chance hires individuals facing barriers to employment, providing job training to those in Baltimore City needing a pathway out of poverty after experiencing incarceration. As a unique social enterprise, Second Chance channels the profits generated through deconstruction and the resale of reclaimed materials directly back into its workforce development programs.
Read the Baltimore Sun’s UDATED article on this dismissed case here!
About Second Chance, Inc.
Second Chance is a 501(c)(3) nonprofit organization dedicated to deconstructing buildings and homes, salvaging reusable materials, and providing job training and workforce development for those with employment obstacles in the Baltimore region. Second Chance is a social enterprise which, in addition to its professional deconstruction services, operates a retail location in downtown Baltimore that occupies 250,000 square feet and offers a wide selection of donated and reclaimed items and materials. Profits generated directly support the Second Chance workforce development training program, which is focused on increasing the skill levels, employability and compensation potential of all participants. Training program graduates are guaranteed associate or supervisory-level positions within Second Chance’s deconstruction services or retail operations. To learn more, please visit secondchanceinc.org.
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