Black-owned investment firm Blueprint Capital Advisors L.L.C. has announced it will get its day in court on a longstanding federal lawsuit against BlackRock Inc. and Owl Rock Capital Corp. (now BlueOwl Capital Inc.)

U.S. District Judge Julien Xavier Neals ruled BlackRock, the world's largest asset manager with just under $8 trillion in total assets, and BlueOwl, with about $65.7 billion in assets, must defend themselves against racketeering allegations made by Blueprint, according to a statement.

“It's time for BlackRock and Owl Rock to have to play by the rules,” Blueprint CEO Jacob Walthour said. He adds that discovery and depositions are in the planning stages, and Blueprint hopes a trial court date will be set once the process concludes.

Blueprint is seeking more than $100 million in punitive damages tied to the alleged acts — more than double the $40 million for which it was initially suing, according to Black Enterprise.

Neals previously denied a motion to dismiss the lawsuit, which suggests that New Jersey officials stole Blueprint’s plan to lower public pension plan costs in the state.

Black Dollar Magazine reported this story in December 2022. Click here to read.

Blueprint alleges it submitted confidential information to New Jersey's Division of Investment (DOI) and Cliffwater, the agency's outside consultant. The agency allegedly took the plan and conspired with BlackRock and BlueOwl to benefit financially.

“At this point in the litigation, the court is satisfied that it may be inferred from the allegations that defendants, through their concerted actions, engaged in a pattern of racketeering activity,” the judge ruled.

Racketeering can involve “acquiring business through illegal activity, including fraud and bribery, operating a business with illegally derived income, or using a business to commit illegal acts or an illegitimate scheme,” according to a statement.

His decision came two years after the original 300-page complaint was filed against BlackRock, Owl Rock, and several New Jersey officials, including Gov. Phil Murphy, the DOI, and Cliffwater, in 2020.

Neals discarded several claims against Murphy and the state; as government officials, the judge ruled the parties were immune, Black Dollar Magazine reported.

"We continue to believe the lawsuit has no merit, and we are confident that we will prevail in this dispute,” BlackRock company spokesperson Dominic McMullan told Bloomberg.