Ito International Corp. v. Prescott, Inc.

Plaintiffs, a group of investors in a general partnership, ask this court to decide whether their investments are securities as a matter of law under the Washington State Securities Act (WSSA). Plaintiffs claim that the court erred in granting defendants partial summary judgment on this issue because plaintiffs’ passivity in the partnership renders them subject to the WSSA’s protections. We agree and reverse.

After the parties filed briefs but before oral argument, plaintiffs settled with a number of defendants. Plaintiffs did not, however, settle with the Inter Realty Planning Co. Ltd. (now…