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MURPHY v. STARGATE DEFENSE SYSTEMS CORP.

Nos. 06-3980, 06-4034.

498 F.3d 386 (2007)

John MURPHY; James Smith, Plaintiffs-Appellants/Cross-Appellees, v. STARGATE DEFENSE SYSTEMS CORP.; James L. Woodruff; Daniel P. Ross; Spectrum Infrared, Inc., Defendants-Appellees/Cross-Appellants.

United States Court of Appeals, Sixth Circuit.

Decided and Filed: August 10, 2007.

Attorney(s) appearing for the Case

ARGUED: Kenneth L. Gibson, Gibson & Lowry, Cuyahoga Falls, Ohio, for Appellants. Richard N. Selby II, Dworken & Bernstein Co., Painesville, Ohio, for Appellees. ON BRIEF: Kenneth L. Gibson, Gibson & Lowry, Cuyahoga Falls, Ohio, for Appellants. Richard N. Selby II, Dworken & Bernstein Co., Painesville, Ohio, for Appellees.

Before: NORRIS, GILMAN, and SUTTON, Circuit Judges.

OPINION

ALAN E. NORRIS, Circuit Judge.

This appeal arises out of the sale of Spectrum Infrared, Inc. ("Spectrum"), an Ohio corporation owned by plaintiffs John Murphy and James Smith. In 2005, Spectrum was sold to Stargate Defense Systems Corp. ("Stargate"), a business operated by defendants James Woodruff and Daniel Ross. The sale was structured as a stock exchange: plaintiffs traded their stock in Spectrum for stock in Stargate. It turned out, however...

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