Camden, NJ – A federal judge has denied a motion by the owners of an Atlantic City uniform business seeking permission to amend their federal lawsuit alleging fraud, racketeering, and other misconduct stemming from a merchandise dispute.
According to a memorandum order filed in the U.S. District Court for the District of New Jersey, U.S. Magistrate Judge Elizabeth A. Pascal ruled that pro se plaintiffs Hayat Masudi, Hamoon Masudi, and Naseeb Masudi failed to demonstrate the “good cause” required to amend their complaint after court-imposed deadlines had expired.
Dispute centers on six-figure merchandise invoice
According to the proposed amended complaint, Hayat Masudi operates Uniform Showroom in Atlantic City, while Hamoon and Naseeb Masudi are his sons. The lawsuit names Uniform Warehouse, Inc., related companies, several individuals, and two law firms as defendants.
Court filings state the dispute arose after defendants allegedly sent the plaintiffs an invoice totaling $316,623.15 for merchandise they claim was delivered to the Atlantic City showroom. According to the proposed amended complaint, the plaintiffs deny ever entering into a written purchase agreement and contend the defendants cannot produce delivery receipts, bills of lading, shipping records, or other documentation proving the merchandise was delivered.
The plaintiffs also allege the defendants repeatedly demanded payment, contacted family members and business associates, and threatened legal action before filing a collection lawsuit in New Jersey Superior Court.
Federal lawsuit alleges RICO violations
According to the original complaint filed in September 2025, the plaintiffs asserted claims under the federal Racketeer Influenced and Corrupt Organizations Act (RICO), along with allegations of malicious prosecution, abuse of process, defamation, tortious interference, and civil rights conspiracy.
Court records show the underlying state court lawsuit was filed in February 2025, seeking more than $261,000 for merchandise the defendants claim was delivered to the business. That case remains pending.
The federal docket reflects that discovery in the civil case has involved numerous disputes, resulting in multiple court conferences and discovery orders. According to the memorandum order, fact discovery has now closed and the defendants have already filed a motion for summary judgment.
Judge says amendment came too late
According to the memorandum order, the plaintiffs filed their motion to amend the complaint on May 5, after the deadline established by the court’s scheduling order.
Judge Pascal explained that under the Federal Rules of Civil Procedure, parties seeking to amend pleadings after scheduling deadlines must first establish “good cause” before a court considers whether an amendment should be allowed.
The order states the plaintiffs failed to satisfy that threshold requirement, leading the court to deny their request to file an amended complaint.
Why it matters
The ruling means the case will continue based on the original complaint rather than the expanded allegations proposed by the plaintiffs. With discovery complete and a summary judgment motion already pending, the litigation now moves toward a decision on whether any of the plaintiffs’ claims will proceed to trial.
Key Points
- A federal judge denied an effort by Atlantic City business owners to amend their federal RICO lawsuit.
- According to a memorandum order, the court found the plaintiffs failed to show good cause for filing the amendment after court deadlines had passed.
- The underlying dispute involves a six-figure merchandise invoice and related litigation pending in New Jersey Superior Court.
