Muskegon Heights Admits Council Members Won City-Owned Property Bids in Federal Lawsuit Response

MUSKEGON HEIGHTS, MI — October 20, 2026 — The City of Muskegon Heights has acknowledged that two City Council members won bids for city-owned properties, according to a federal court filing submitted Monday, October 19.

The admission appears in the City’s 32-page response to a whistleblower lawsuit filed by former City Manager Pearlette Merriweather, who alleges she was fired after raising concerns about questionable financial practices and property transactions.

In paragraph 49 of the lawsuit, Merriweather alleges that Council members Derrick Collins and LaShae Simmons submitted bids two to three times lower than the highest bidders but were nevertheless awarded the properties.

In its response, the City and other defendants acknowledged that Collins and Simmons won bids for city-owned real estate, but stated they lacked sufficient knowledge to admit or deny the remaining allegations concerning the bid amounts.

The defendants also acknowledged that a deed transferring property to Collins was executed following the bidding process.

The court filing comes as a Michigan State Police investigation has brought additional scrutiny to property transactions and allegations of public corruption in Muskegon Heights.

Merriweather, who was removed from her position on June 8, maintains that she raised concerns about city operations before her termination. The City disputes her allegations of retaliation, stating that she was removed because of performance issues.

On June 16, Merriweather appeared on WUVS 103.7 The Beat, where she discussed concerns about city finances and her dismissal.

The City’s admissions confirm that the council members won property bids, but do not establish that the transactions were illegal or improperly awarded. Those questions remain unresolved.

The federal case is Merriweather v. City of Muskegon Heights et al., Case No. 1:26-cv-02520, in the U.S. District Court for the Western District of Michigan.

Source: Defendants’ Answer to Plaintiff’s Complaint, filed October 19, 2026, ECF No. 5, pages 10–11.