Hebert v. Abbey Healthcare Group, Inc.

hKNOLL, Judge.

The plaintiff, Frank Hebert, is a former employee of Abbey Medical, Inc., a wholly owned subsidiary of the defendant corporation, Abbey Healthcare Group, Inc.1 (hereafter collectively referred to as “Abbey”). In 1991, Hebert and other employees were offered the opportunity to purchase shares of Abbey common stock. Under the terms of the stock subscription agreement, each purchaser promised to pay forty percent of the total purchase price in cash, and to sign a nonrecourse promissory note, secured by a pledge of the stock, for the remaining sixty percent. Hebert took advantage of…