DeMent v. Abbott Capital Corp.

MEMORANDUM OPINION

PRENTICE H. MARSHALL, District Judge.

According to the complaint in this action, Eagle Monitoring Systems (“Eagle”), a business that designed systems to monitor complex machinery, began as a partnership between plaintiffs H. Duane DeMent and Keith Kopp in 1971. Being inexperienced in business matters, they sought management and financial advice from defendant Richard E. Lassar and his firm, Richard E. Lasser & Associates (“Lassar & Associates”). In 1973, Lassar advised plaintiffs to incorporate. Plaintiffs did so and sold 6%% of the Eagle stock to Lassar for $10,-000 and 6%%…