A buddy of mine is being sued for alleged misrepresentations about his net worth and professional background by a former investor in one of his now closed businesses. The guy is saying my friend made comments to him about being worth millions and that he had sold one of his other companies. The company closed and he is suing stating that if my friend hadn’t made those comments to him then he wouldn’t have invested but he never asked him for any focus around net worth or a background check and I know he’s not a liar about things like that. Does he have a good case against my friend? They did mediation and apparently the mediator came back into the room and said I’m not recommending we mediate anymore given the plaintiffs case being unclear and he told my friend that this guy is just out for revenge .
I’m not sure how to answer your question. If the case were to go to trial and the plaintiff needs to prove a misrepresentation, reliance on the misrepresentation, materiality, and damages, then the plaintiff merely needs admissible evidence as to those points.
Your friend should rely upon his counsel’s advice.
Your friend is being sued and should be asking these questions of his attorney. Not sure what kind of investment your friend was involved in but many types of "investments" are actually considered securities offerings under the law and your friend might find themselves in very hot water.
Any answer provided on the AVVO website is for informational purposes only and does not constitute legal advice for your specific situation. You should always seek legal advice before taking any action which may affect your future rights. Your local legal aid office may well provide information or access to free legal advice and your state bar organization may provide referrals to reputable attorneys who will provide advice on a reduced cost basis.
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