Wright v. National Warranty Co.

SUHRHEINRICH, Circuit Judge.

Plaintiffs Robert and Barbara Wright appeal from the district court’s grant of summary judgment in favor of defendants in this federal securities action. For the reasons that follow, we affirm in part, reverse in part and remand.

*258I.

This case involves the transaction by which plaintiffs were sold equity interests in defendant National Warranty Company, L.P., (“NWP”) and National Warranty, Inc. (“NWC”). NWC was formed for the purpose of implementing a program which would offer to small independent or regional companies lifetime warranties on automobile repair parts…