Texas Attorney General Ken Paxton has filed a lawsuit against the East Plano Islamic Center (EPIC), Community Capital Partners (CCP), and several of their leaders, alleging violations of Texas securities laws and embezzlement in connection with a proposed residential development now referred to as The Meadow. The project is designed to include over 1,000 residential units, a mosque, a K-12 faith-based school, and retail spaces in North Texas, near Dallas. Paxton claims that the project was intended to be reserved exclusively for Muslim residents, a claim that the developers have denied.

The lawsuit, filed in Collin County, accuses CCP of failing to register as a securities dealer and committing fraud by misrepresenting the development's location and the compensation of its leaders. This legal action follows Paxton's request to the Texas Securities Board to review findings from his office's investigation into the development, which had previously been scrutinized by various Texas officials, including Governor Greg Abbott. Abbott has expressed concerns about the implications of the development, stating that "Sharia law is not allowed in Texas."

In his announcement, Paxton characterized the actions of the EPIC City developers as part of a broader scheme to exploit land for personal gain, asserting that the leaders behind EPIC City have engaged in a detrimental plot that threatens to harm Texas land and enrich themselves. He emphasized his commitment to enforcing the law against perceived violations that he believes could harm Texans.

The U.S. Department of Justice conducted an investigation into the project over the summer, concluding without finding evidence of illegal intent. The developers have retained legal representation to address the challenges posed by the state, asserting that they are victims of racial and religious profiling. The controversy surrounding the project highlights ongoing tensions related to religious and ethnic diversity in housing developments in Texas, particularly in light of the significant Islamophobic backlash that has emerged in recent months.