Lawsuit Filed Against Ziyou Xu, Weiguo Xu, and RIC Alleging Breach of Contract, Fraud, Embezzlement, and RICO Violations

Civil complaint alleges RICO violations, fraud, and embezzlement by Ziyou Xu, RIC and Weiguo Xu regarding the misappropriation of robotic 3D printing tech.

SAN DIEGO, CA, UNITED STATES, May 18, 2026 /EINPresswire.com/ -- Civil Complaint Filed in Los Angeles County Superior Court Concerning Business Dispute Involving AICT and RIC

Plaintiffs Yue Zhao and affiliated entities have filed a civil complaint in the Superior Court of California, County of Los Angeles, against defendants Ziyou Xu, Weiguo Xu, Advanced Intelligent Construction Technology, Inc. (“AICT”), and Robotic Intelligent Construction Technology Inc. (“RIC”).

Case No.: [25TRCV02581]

According to the filed complaint, the dispute concerns the formation, ownership, management, and operation of business entities involved in robotic 3D printing and construction technology projects in the United States and abroad.

The complaint asserts claims including breach of contract, breach of fiduciary duty, unjust enrichment, conversion, negligent misrepresentation, intentional misrepresentation, civil conspiracy, and alleged violations of California Business and Professions Code section 17200. The filing also includes claims brought under the federal Racketeer Influenced and Corrupt Organizations Act (“RICO”).

According to the allegations set forth in the complaint, Yue Zhao and defendant Ziyou Xu co-founded AICT in or around 2021 with the stated purpose of developing and commercializing robotic construction and 3D printing technologies for residential and commercial construction applications. The complaint alleges that the parties entered into agreements concerning ownership interests, management participation, equity allocations, profit-sharing arrangements, and operational responsibilities associated with AICT and related successor entities.

The complaint further alleges that Ms. Zhao and affiliated entities contributed financial support, marketing assistance, investor outreach, and business development services in connection with the companies’ operations and growth initiatives. According to the filing, those efforts allegedly assisted the companies in pursuing commercial relationships and construction-related projects within the emerging robotic construction industry.

Court filings allege that disputes later developed regarding company governance, financial oversight, operational control, ownership interests, and access to business records. According to the complaint, the plaintiffs contend that they were excluded from certain management decisions and denied access to information relating to company operations and finances.

The complaint also references alleged financial transfers involving company-related accounts. According to the allegations contained in the filing, approximately $1.5 million in funds were transferred through accounts associated with certain entities and individuals identified in the complaint. The filing states that the transactions were later characterized as consulting-related payments. The complaint does not represent findings by the court, and no determination regarding liability has been made.

According to the complaint, the dispute additionally involves allegations concerning the transition of certain operations and business opportunities from AICT to RIC. Plaintiffs allege in the filing that intellectual property, customer relationships, operational assets, and business opportunities associated with AICT were used in connection with subsequent business activities involving RIC and related entities. The defendants have not publicly responded to the allegations contained in the complaint at the time of this release.

The plaintiffs seek compensatory damages, punitive damages where permitted by law, attorney’s fees, equitable relief, prejudgment interest, and other remedies requested in the complaint. The filing also seeks relief relating to ownership interests, profits, and revenues allegedly connected to the disputed business operations.

“This press release is intended solely to provide public notice of a filed legal action and summarize allegations contained in publicly filed court documents,” said counsel for the plaintiffs. “The allegations remain subject to dispute, and the litigation process will determine the merits of the parties’ respective claims and defenses.”

The allegations described in the complaint are claims only. The court has not made any findings of fact or conclusions regarding liability, wrongdoing, or damages.

Media Contact:

Leeran S. Barzilai, Esq.
Leeran S. Barzilai, A Professional Law Corporation
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San Diego, California 92109
Phone: 619-436-7544

About Leeran S. Barzilai, A Professional Law Corporation

Leeran S. Barzilai, A Professional Law Corporation is a California-based law firm representing clients in commercial litigation, business disputes, employment matters, and complex civil litigation proceedings.

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