Lawsuit Against Ziyou Xu and Weiguo Xu Explained

Comic style thumbnail in 9:16 ratio A dramatic legal scene with a large wooden gavel striking diagonally Two suited male defendants, Ziyou Xu and Weiguo Xu, stand behind a desk with defensive expressions In the foreground, a determined female plaintiff silhouette holds a rolled legal complaint Offshore money trails fly toward a folder labeled "China Accounts " A robotic 3D printer arm and torn construction blueprint appear in the background Red, gold, black, and cool gray blue color scheme Text reads: "LAWSUIT FILED" at top, and "BREACH • FRAUD • RICO" at bottom No handcuffs shown

LAWSUIT FILED: Breach of Contract, Fraud, Embezzlement & RICO – Zhao v. Xu, AICT, RIC

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

Plaintiffs Yue Zhao and affiliated entities file a civil complaint against Ziyou Xu, Weiguo Xu, AICT, and RIC alleging fraud, RICO violations, and $1.5M in unauthorized transfers.

LOS ANGELES, California — Plaintiffs Yue Zhao and affiliated entities have filed a comprehensive 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”).

The legal filing asserts a wide array of claims, including breach of contract, unjust enrichment, breach of fiduciary duty, conversion, fraud, civil conspiracy, negligent misrepresentation, intentional misrepresentation, civil theft, and embezzlement. Furthermore, the complaint alleges significant violations of California Business and Professions Code section 17200 and the Racketeer Influenced and Corrupt Organizations Act (RICO).

According to the complaint, Yue Zhao and Ziyou Xu co-founded AICT in 2021 to commercialize robotic 3D printing construction technology within the United States and international markets. The plaintiffs allege that under their foundational agreements, Ms. Zhao was entitled to specific ownership interests, management rights, profit-sharing rights, and stock interests in AICT, which were intended to carry over into the successor entity, RIC.

The filing details that Ms. Zhao and her affiliated entities contributed vital capital, marketing expertise, business development, and investor recruitment. These efforts were allegedly instrumental in securing high-profile projects and partnerships, including those associated with Alquist 3D and Walmart-related construction initiatives.

However, the lawsuit alleges a subsequent and systematic exclusion of the plaintiffs from management decisions, financial records, and core operations. The complaint further charges that company funds and assets were diverted for unauthorized purposes, including suspicious offshore transfers. Specifically, the plaintiffs allege that more than $1.5 million in company funds were moved through accounts associated with Weiguo Xu and various entities located in China—transactions later characterized by the defendants as “consulting payments.”

The dispute also encompasses contested stock vesting, corporate governance failures, and the unauthorized transition of business operations from AICT to RIC. Plaintiffs allege that the defendants launched competing ventures by misappropriating the relationships and intellectual property of the original companies.

Consequently, the plaintiffs are seeking compensatory, punitive, and treble damages, alongside attorney’s fees and prejudgment interest. The suit further demands the disgorgement of profits and equitable remedies, including a constructive trust over all revenues and ownership interests associated with AICT, RIC, and related entities.