Background: Web Objective Inc. filed a motion for default judgment in a class action lawsuit against SociaLabra Inc., Stewart Davis, and Josef Zankowicz for breach of contract and misrepresentation related to a debenture offering.
Facts:
In 2017, Web Objective sued SociaLabra, Davis, Zankowicz, Ryan Pinto, and Jeffrey Chong. The action against Pinto and Chong was discontinued.
Web Objective sought damages of $701,549.71 for breach of contract, including interest, plus costs of $30,000.
Issues/Main Discussion: The case focused on the misrepresentations made by SociaLabra and Davis in their debenture offering, which led to investors, including Web Objective, losing their investment.
Ruling:
SociaLabra and Davis were found jointly and severally liable for negligent misrepresentation, with damages awarded to Web Objective and class members totaling $701,549.71 plus costs of $30,000.
SociaLabra, but not Davis, was found liable for breach of contract. Davis was excluded from contract liability due to lack of privity.
Amount Awarded:
$701,549.71 in damages.
$30,000 in costs.
Background of Case:
Web Objective and other investors were misled by representations from SociaLabra and Davis regarding their debenture offering, leading to a total loss of investment when the promised conditions were not met.
