Nebius Sued Over Alabama AI Land Deal Allegedly Costing Regions $66 Million
Nebius (NASDAQ: NBIS) has been sued by a Regions Financial shareholder who alleges the AI neocloud and other participants in a Birmingham land deal concealed a planned resale, depriving Regions Bank of $66.3 million.
The complaint, filed Sept. 5 in Jefferson County Circuit Court in Alabama, centers on property that allegedly changed hands three times on Sept. 30, 2025, rising in price from $17.2 million to $83.5 million. The former Regions operations site is being developed for a Nebius AI data center.
Plaintiff James M. Anderson seeks recovery on behalf of Regions Bank, alleging bank officials failed to obtain fair value and that Nebius and other transaction participants conspired with them and committed fraud. He requests compensatory and punitive damages and a jury trial. The $66.3 million represents his calculation of the bank’s alleged loss, not a court award.
The suit adds a dispute over the acquisition price to a project already facing legal challenges from nearby residents. Anderson’s complaint focuses on financial recovery for the bank, while separate litigation seeks to stop construction.
Regions declined to discuss pending litigation and said it looked forward to addressing the matter through the legal system, according to WBRC’s Sept. 9 report. The station reported that defendants had not filed public responses at that time.
According to the complaint, Regions sold the property to Lakeshore Data Center LLC for $17.2 million. Lakeshore sold it the same day to 201 Milan Birmingham LLC for $27 million, and Milan then sold it to Alabama ADC Holdings LLC for $83.5 million. WBRC separately reported the same transaction sequence and prices, citing property records.
Anderson alleges Nebius owns an interest in, or otherwise controls, Alabama ADC Holdings. His fraud claim contends the transaction participants concealed an existing arrangement for the final resale, and that Regions would not have accepted $17.2 million had it known what the ultimate purchaser would pay.
The complaint says the deeds were recorded the following morning, Oct. 1, 2025, between 10:06 a.m. and 11:17 a.m. It also alleges the same law firm prepared the deeds for the first and third sales, which Anderson cites as evidence of coordination. The complaint does not establish that the price increases resulted from wrongdoing.
The bank officials named include Paul Stivender, identified in the filing as a senior vice president who signed Regions’ deed, and Mark A. Crosswhite, identified as a director. Anderson accuses them and unidentified bank personnel of negligence, wantonness and breaches of fiduciary duty over the sale.
Anderson also alleges Crosswhite had a conflict because his son’s law firm, Fortif Law Partners, represents Nebius and Alabama ADC Holdings. The complaint says that firm entered an appearance for those companies in July 2026, after Anderson demanded action from Regions.
Other named defendants include Robert O. Burton, who allegedly signed Lakeshore’s deed as its manager, and Kari Schrader, who allegedly signed Milan’s deed. Nebius and the other transaction participants are named in the conspiracy and fraud counts.
Anderson holds shares in Regions Financial through an individual retirement account, according to the filing. Because Regions Financial owns Regions Bank, he describes the case as a double derivative action: a shareholder of the parent seeking to enforce the subsidiary’s rights. Regions Bank is listed as a nominal defendant and would be the beneficiary of the recovery sought on its behalf.
Anderson says he asked Regions Financial management on June 5, 2026, to pursue claims over the sale, and that the company failed or refused to act before he sued more than 90 days later.
Nebius’s project website describes the development as a 75-acre site at 201 Milan Parkway in Birmingham’s Oxmoor neighborhood. Its published schedule targets initial commissioning and energization in the fourth quarter of 2026, with construction continuing through 2028, subject to change. The company identifies Hoar Construction as its general contractor.
In separate litigation brought by residents Robert and Gail Sansome, a judge set a March 8, 2027, hearing on whether to permanently halt the project, WBHM reported Aug. 14. The residents contend Birmingham issued permits improperly because data centers were not explicitly listed as a permitted land use. Nebius lawyer Charles Prueter told WBHM the permitting process was lawful. That defense concerns the zoning case, not Anderson’s allegations about the land sale.
