Judge Rules Investor Lawsuit Against Back9Network Can Continue
A Connecticut couple filed suit earlier this year alleging that they had been duped into investing a substantial amount of money into the Back9Network -- a golf lifestyle channel that eventually ceased its operations. Now, a judge this week has ruled that their lawsuit can proceed.
The administration of Gov. Dannel Malloy invested more than $5 million into Back9. William and Janet Ghio invested in the company, too. According to the lawsuit, the couple first invested a substantial amount of money in the network in December 2012. They made three more investments and were given a guarantee that "the lights would not be turned off, that there would not be layoffs read about in the paper." Their last investment was for $360,000.
But, eventually, the company ran out of money, it fired all but its executive leadership, and the network stopped operating. And, in the suit, the Ghios allege that the defendants were dishonest, unethical, and caused them loss and damage.
Several defendants are listed. The Ghios say their primary solicitor of investments was Paul Pendergast -- an investment advisor for the company who also works as a consultant and fundraiser for WNPR's parent company.
Also listed as defendants are Back9 officials Carlos Silva, James Bosworth, Reid Gorman, and Charles Cox. Gorman and Cox are the only two employees who remain. Their attorney did not respond to a request for comment.
Most of those defendants eventually asked the court to dismiss the suit against them. Their claim was that the statute of limitations on the case had run out. This week, a judge disagreed and dismissed that claim and the lawsuit will continue.
Clarification: The original story suggested that the Ghios invested a certain amount of money. The actual amount of the investment is not stated in the lawsuit.