Navellier

I. BACKGROUND

A. Facts Plaintiffs provided subadvisory investment services to FolioMetrix, an investment advisory firm founded by Jerry Murphey and Greg Rutherford. Between 2013 and 2014, Navellier loaned FolioMetrix $1.5 million “via three separate $500,000 capital injections.” The loans were personally guaranteed by Murphey and Rutherford through a promissory note they executed in December 2013.1 Plaintiffs also provided subadvisory investment services to another investment advisory firm, American Independence. Grail and its

1 The promissory note only covered $1 million of the $1.5 million loaned

by Navellier because he did not send the remaining $500,000 to FolioMetrix until April 2014.

2 managing partner, Putnam, were involved with both FolioMetrix and American Independence and proposed merging the two to form a new company called RiskX. In March 2015, Navellier and Putnam met in New York to discuss the merger and Navellier’s role in providing investment advice to RiskX. At this point, Murphey and Rutherford had not repaid any portion of Navellier’s $1.5 million loan. According to Navellier, Putnam said during the meeting that he “wanted to relieve [Murphey and Rutherford]…