Two Local Investors File Lawsuit Against Scotty's Brewhouse Founder Alleging Violations of Indiana Securities Laws and Fraud

TWO LOCAL INVESTORS FILE LAWSUIT AGAINST SCOTTY’S BREWHOUSE FOUNDER ALLEDGING VIOLATIONS OF INDIANA SECURITIES LAWS AND FRAUD

(Indianapolis, Indiana) – The Fishers-based law firm of Massillamany Jeter & Carson LLP filed a securities fraud lawsuit against Scott Wise today in Marion County Superior Court on behalf of the two largest shareholders of the Scotty’s Brewhouse brand prior to the company’s sale to Arizona-based private equity firm Due North Holdings. The lawsuit alleges that Wise, founder of Scotty’s Brewhouse, violated securities laws by failing to register the securities and making false statements to the two investors, both of whom lived in Indianapolis at the time. The investors, one of whom has since moved to Florida, invested a combined $1 million into the company from 2009 to 2015. The investors allege that they lost over $1 million combined because the securities were never registered, and because they were misled about the value of their investment and what percentage ownership they were acquiring. The investors claim that Wise violated a duty to them as business partners when he sold the company and made himself millions while the rest of the equity holders got nothing.

“The defendants failed to register their securities, failed to fully disclose what exactly they were selling and to whom, and then engaged in a series of misrepresentations and omissions designed to keep these investors in the dark while Scott Wise pocketed well over $1 million in payouts.” said lead trial attorney Chris Jeter. All of the Scotty’s brewhouse restaurants were originally owed by the parent company, Scotty’s Holdings, LLC, prior to their sale to Due North in 2016 for $10 million. Wise remained a controlling owner of Scotty’s Holdings until the sale.

Massillamany Jeter & Carson LLP is a full-service law firm based in Hamilton County but serving the entire State of Indiana. The firm focuses its practice in the areas of personal injury, criminal defense, corporate law, civil litigation, family law, estate planning, appeals and government services. The Firm has offices in Fishers, Carmel, Noblesville, Plainfield, Greenwood, and Lawrence.

Scott's Complaint

https://www.indystar.com/story/news/2019/01/29/lawsuit-scottys-brewhouse-founder-defrauded-investors-1-million/2708657002/

https://fox59.com/2019/01/29/investors-sue-scottys-brewhouse-founder-claim-he-defrauded-them-out-of-1-million/

For more information, please visit www.mjcattorneys.com or visit us on social media:

Facebook: www.facebook.com/mjcattorneys

Twitter: @massjeter

-30-