The plaintiffs brought an action to rescind a settlement agreement, alleging the defendant fraudulently inflated the company's revenue prior to the plaintiff purchasing the defendant's shares.
The defendants moved to strike the action as an abuse of process based on a full and final release signed during the settlement.
The plaintiffs moved for an interlocutory injunction to prevent the defendants from enforcing the settlement agreement's default provisions.
The court dismissed the motion to strike, finding a strong prima facie case of fraud that was not contemplated by the release.
The court granted the interlocutory injunction, finding the plaintiffs would suffer irreparable harm if the defendant returned to the business.