Diversified Equities, Inc. v. Warren

DROWOTA, Judge.

OPINION

This is a fraudulent practices securities case arising out of the sale of three businesses. Plaintiffs-Appellants sought rescission or reformation of a contract in which they purchased two health spa corporations and a sole proprietorship from defendants. Plaintiffs contended that defendants made certain fraudulent representations to them concerning the value of the accounts receivable held by the two corporations which entitle them to a cancellation or reduction of a promissory note given to defendants. Plaintiffs also sought to be paid the cash value of an insurance…