Jim Long v. Shultz Cattle Company, Incorporated, an Oklahoma Corporation, and William B. Shultz

KING, Circuit Judge:

Plaintiffs-appellants appeal from the judgment of the district court that defendants-appellees’ cattle-feeding consulting agreements were not investment contracts and were therefore not subject to federal securities regulation. For the reasons set forth below, we reverse the judgment of the district court.

I

A. Facts

In August and September of 1982, plaintiffs-appellants Jim Long, Jerome Atchley, and Jon and Linda Coleman (collectively, “plaintiffs”) became involved in a cattle-feeding program advertised by defendants-appellees Shultz Cattle Company, Inc. (“SCCI”). Plaintiffs…