P. Stolz Family Partnership L.P. v. Daum
Court of Appeals for the Second Circuit
1Opinion of the Court
CUDAHY, Circuit Judge.
Smart World Technologies (Smart World) was one of many technology companies that did not survive the bursting of the technology bubble during 2000. Its business was free Internet access. At some point during its existence,. Smart World began offering and selling “membership interests” in the company through a written prospectus. The P. Stolz Family Partnership (Stolz) purchased 31,250 of these membership units for a total of $250,000 with a Subscription Agreement signed on February 17, 2000. The sale was effective with the issuance of a certificate of membership to Stolz…
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