Richard E. COFFIN, Appellant, v. POLISHING MACHINES, INC., John A. Tricoli, Jr., Helen Tricoli, and Nicholas Daniels, Appellees

BUTZNER, Circuit Judge:

Richard E. Coffin sued in the district court to recover compensatory and punitive damages for misrepresentations allegedly made to him in connection with his purchase of stock in Polishing Machines Systems, Inc. The district court dismissed the action for lack of federal jurisdiction and for failure to state a claim upon which relief could be granted. We reverse and remand.

I

Coffin’s complaint alleges the following facts. Polishing Machines is a Virginia corporation that sells commercial car waxing and polishing equipment. John Tricoli, president of the company, visited…