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Second Amended Complaint Case 1:16-cv-00740-RC Document 81 Filed 03/06/18 Page 1 of 87 IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA SIMON BRONNER, MICHAEL ROCKLAND, CHARLES D. KUPFER, and MICHAEL L. BARTON, Plaintiffs, v. Case No. 16-cv-00740-RC LISA DUGGAN, CURTIS MAREZ, AVERY JURY TRIAL DEMANDED GORDON, NEFERTI TADIAR, SUNAINA MAIRA, CHANDAN REDDY, J. KEHAULANI KAUANUI, JASBIR PUAR, STEVEN SALAITA, JOHN STEPHENS, and THE AMERICAN STUDIES ASSOCIATION, Defendants. PLAINTIFFS’ [PROPOSED] SECOND AMENDED COMPLAINT - 1 - Case 1:16-cv-00740-RC Document 81 Filed 03/06/18 Page 2 of 87 TABLE OF CONTENTS INTRODUCTION .......................................................................................................................... 1 JURISDICTION AND VENUE ..................................................................................................... 6 THE PARTIES................................................................................................................................ 6 STATEMENT OF FACTS ............................................................................................................. 9 I. BACKGROUND ........................................................................................................................ 9 A. The American Studies Association ..................................................................................... 9 B. USACBI and PACBI’s Academic Boycott of Israel ........................................................ 12 C. USACBI Targets the American Studies Association ........................................................ 15 II. DEFENDANTS INFILTRATE AND EXPLOIT THE AMERICAN STUDIES ASSOCIATION. ........................................................................................................................... 17 A. Defendants Covertly Pack the American Studies Association National Council with USACBI Leaders and Supporters. ............................................................................................ 17 B. Defendants Exploit American Studies Association Resources to Advance the USACBI Platform. ................................................................................................................................... 27 1. The Academic and Community Activism Caucus and the 2012 Annual Meeting ....... 27 2. The 2013 Annual Meeting, “Roundtable,” and “Open Meeting” ................................. 31 C. Silencing Dissent and Withholding Information Pertinent to the Vote from Membership ..................................................................................................................... 37 1. Removal of Plaintiff Bronner from the 2013 National Council Meeting ..................... 38 2. Defendants hide dissenting viewpoints that would inform the membership’s decision on the vote. ............................................................................................................................ 40 3. Defendants form a subcommittee of USACBI Leaders and firmly pro-resolution advocates to draft the disclosure materials for the National Council, and withhold their knowledge of the expected backlash. .................................................................................... 42 D. Defendants Freeze the Membership Rolls to Prevent Those Opposed to the Resolution from Voting, Banning Plaintiff Barton From Voting. .............................................................. 45 i Case 1:16-cv-00740-RC Document 81 Filed 03/06/18 Page 3 of 87 E. The Announced Results of the Vote Violate American Studies Association Bylaws and the District of Columbia Nonprofit Corporations Act. ............................................................. 50 F. The Passage and Adoption of the Resolution Constitutes a Substantial Part of the American Studies Association’s Activities, Violating the Association’s Bylaws. ................... 52 1. Efforts to Influence Israeli Legislation Constitute a Substantial Part of American Studies Association Activities .............................................................................................. 53 2. Efforts to Influence United States Legislation Constitute a Substantial Part of American Studies Association’s Resolution-Related Activities ........................................... 55 G. Defendants Invade the American Studies Association Trust Fund to Cover the Expenses Arising from the Boycott Resolution ........................................................................................ 57 H. Financial Injury to American Studies Association and Plaintiffs’ Interests Resulting from Defendants’ Actions ................................................................................................................. 61 1. Decrease in revenue ...................................................................................................... 61 2. Resolution-related expenses .......................................................................................... 63 COUNT ONE Breach Of Fiduciary Duties Against The Individual Defendants By All Plaintiffs (Material Misrepresentations and Omissions in Connection with Elections to Office and Seeking Member Approval of Boycott Resolution and Amendment of the Bylaws) ................................ 69 COUNT TWO Breach Of Fiduciary Duties Against The Individual Defendants By All Plaintiffs (Duty of Loyalty and Good Faith, Misappropriation and Misuse of Assets of American Studies Association) .................................................................................................................................. 70 COUNT THREE Ultra Vires and Breach of Contract Action Against All Defendants By All Plaintiffs (Failure To Nominate Officers and National Council Reflecting Diversity of Membership) ................................................................................................................................. 71 COUNT FOUR Ultra Vires Action and Breach of Contract Against All Defendants By All Plaintiffs (Freezing Membership Rolls to Prohibit Voting) ......................................................... 74 COUNT FIVE Ultra Vires Action and Breach of Contract Against All Defendants By All Plaintiffs (Substantial Part of Activities Attempting to Influence Legislation) ............................ 76 COUNT SIX (IN THE ALTERNATIVE) Breach Of Contract Against Defendant American Studies Association By All Plaintiffs (Voting Process Contrary To Bylaws) .............................. 78 COUNT SEVEN (IN THE ALTERNATIVE) Breach of D.C. Nonprofit Corporation Act Against Defendant American Studies Association By All Plaintiffs ............................................ 79 COUNT EIGHT Breach Of Contract Against Defendant American Studies Association By Plaintiff Barton (Denial of Right To Vote) ................................................................................... 80 ii Case 1:16-cv-00740-RC Document 81 Filed 03/06/18 Page 4 of 87 COUNT NINE Corporate Waste Against All Defendants By All Plaintiffs ............................... 81 PRAYER FOR RELIEF ............................................................................................................... 82 iii Case 1:16-cv-00740-RC Document 81 Filed 03/06/18 Page 5 of 87 Plaintiffs Simon Bronner, Michael Rockland, Michael L. Barton, and Charles D. Kupfer (collectively, “Plaintiffs”), hereby bring claims for breach of fiduciary duty against Defendants Lisa Duggan, Curtis Marez, Avery Gordon, Neferti Tadiar, Sunaina Maira, Chandan Reddy, J. Kehaulani Kauanui, Jasbir Puar, Steven Salaita, and John Stevens (“the Individual Defendants”). Plaintiffs also bring claims for breach of contract and breach of the District of Columbia Nonprofit Corporation Act against the American Studies Association, and claims for ultra vires acts and waste against all Defendants. INTRODUCTION 1. This case, at its core, seeks redress for breaches of contractual and fiduciary duties by individuals who gained and abused positions of trust within the American Studies Association through deception and misrepresentation, purposefully aided and assisted by their fellow collaborators within the USACBI, a pro-Palestinian political activist group that seeks to delegitimize the State of Israel in the world community.1 In furtherance of their scheme, the defendants orchestrated the misappropriation of the assets, both monetary and reputational, of the American Studies Association to further their agenda to promote an academic boycott of Israel – a political agenda that subverts the apolitical mission and scholarly purpose of the American Studies Association. 2. For over 65 years, the American Studies Association has had a single, express, legal purpose – the promotion of the academic study of American culture. That purpose is enshrined in association’s Constitution and Bylaws and mandated by its status under the D.C. Nonprofit Corporation Act of 2010, and required as a condition for income tax exemption under the Internal Revenue Code. 1 USACBI is an acronym for the United States Association for the Academic and Cultural Boycott of Israel. USACBI is the U.S. arm of PACBI (the Palestinian Campaign for the Academic and Cultural Boycott of Israel). 1 Case 1:16-cv-00740-RC Document 81 Filed 03/06/18 Page 6 of 87 3. Despite this, USACBI leaders targeted the American Studies Association as a vehicle to advance an academic boycott of Israel (the “USACBI Boycott”). They did this by taking the steps described in greater detail below to induce the American Studies Association to adopt
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