Maude

FACTS AND PROCEDURAL HISTORY

Freshpark makes portable skateboard and dirt bike equipment. It was established by Roger in February 2009. During the relevant period, Roger and his wife, Esther, were the company’s sole board members, held all the officer positions, and exercised complete control over the company. Plaintiffs are investors in Freshpark. Maude invested $300,000 in May 2009 in exchange for a 20 percent ownership interest, and Piercey invested $250,000 in August 2011 in exchange for a 10 percent ownership interest. In their complaint, plaintiffs allege the Hickeys knowingly mismanaged Freshpark and engaged in numerous forms of self-dealing. Among other things, they contend the Hickeys caused Freshpark 1 We refer to defendants Roger Hickey and Esther Hickey individually by their first names since they share a surname, and we refer to them collectively as the Hickeys.

2 to (1) file inaccurate tax documents; (2) provide plaintiffs with K-1 statements that showed distributions to plaintiffs that were never made; (3) make nearly $1 million in distributions to the Hickeys; (4) enter into sweetheart deals with defendants Trailer-Tug LLC and Germ Scan, Inc., alleged alter egos…