Jewish organizations sue Medford over values-aligned investment ordinance

Editors Note: Gotta Know Medford has reached out to city officials for comment and will have a follow-up story.

The following was submitted by Gevura Fund:

The Gevura Fund and the National Jewish Advocacy Center (NJAC) along with the law firm of Libby Hoopes Brooks & Mulvey, P.C. have filed a lawsuit challenging a City of Medford ordinance that unlawfully mandates divestment of public funds based on political and ideological criteria.

The lawsuit challenges Medford’s new “Values-Aligned Local Investments Ordinance,” which restricts the city from investing taxpayer funds in companies associated with arbitrary categories including fossil fuels, defense contracting, or alleged “human rights violations.” The ordinance applies to general city funds including pension-related assets.

According to the complaint, the ordinance is preempted by federal and state law, and conflicts with Massachusetts investment laws, which require city officials to prioritize liquidity and yield when managing public funds. The ordinance replaces objective financial standards with subjective criteria that open the door to political bias, mismanagement, and reduced returns —all at taxpayer expense.

As Rachel Sebbag, litigation counsel at NJAC and the Gevura Fund explained: “We know the movement to pass these legally defective divestment ordinances nationwide are motivated by anti-Jewish animus, but that’s not what this lawsuit is about. As a clear matter of constitutional law, these ordinances cannot stand. Rogue activist city councils must not be allowed to trample taxpayer rights.” 

“The Gevura Fund was proud to step in when we saw Medford’s elected officials using vague language to mask what is essentially a BDS-style divestment policy,” said Tina Snider, president of the Gevura Fund. “The law is clear, municipal governments do not have the authority to use taxpayer funds for ideological boycotts, against Jews or anyone else.”

Professor Anat Alon-Beck, corporate counsel at NJAC, added, “Public fiduciary systems are deliberately structured to insulate beneficiary assets from precisely this kind of pressure—to prevent ideological capture, selective boycotts, and the politicization of investment decisions.” The complaint further argues the ordinance unlawfully interferes with federal foreign policy and violates state law governing municipal investments. The lawsuit seeks injunctive relief to block enforcement of the ordinance.

Douglas Brooks, managing partner at Libby Hoopes Brooks & Mulvey, P.C., stated, “We are proud to stand with these groups in confronting antisemitic discrimination and holding local officials accountable for unlawful government overreach.”