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Should I sue my friend to recover my investment? (alien.top)

submitted 11 months ago by Thirdfcuk@alien.top to c/entrepreneur@indiehackers.space

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Hi, I’m a freelance software developer. My friend had an LLC and wanted me to join him for a project to revamp his online store.

I invested 5k and entered only a profit-sharing scheme. I worked on top of it, being in charge of the project. If successful, the profit shares would have been a great return. Big IF but I knew the risks.

However, soon after starting I noticed that my friend had exaggerated his financials and had no plan as to what he wanted to achieve. Also, I had to incur extra costs like shopify themes and other tools that he said he would reimburse me for but made a lot of excuses to not pay them back.

Fast forward to a couple weeks after we started, he’s shutting down his LLC. I told him we should re-do the contract since I signed with his LLC if the project should continue. He’s gaslighting me into doubting him and telling me to just trust him and not worry about it. Obviously I’m not stupid and I’m catching onto his conman traits such as talking big and always mentioning his big past successes and the high profile people he knows.

Basically he has no intentions to re-do the contract and firm on not returning my money. He constantly reminds me “if you quit the investment is lost” (actual clause in the contract). No clause about what happens if the LLC disappears. What are my rights? 5% of me says I’m misreading the situation but my gut instinct is so strong on this one. I think I would sue and just lose this friend.

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[–] yllirania@alien.top 1 points 11 months ago

When you say that you "invested" $5k - are you a partner in the LLC and/or on the board of directors? If so, you may have a legal stance from which you can possibly take over the LLC from him, if you are interested and have the means to do so.

If you are not a member of the board or a partner, what sort of paperwork did you get for your investment?

If you aren't interested in taking it over and/or don't want to, either go the small claims route and ensure you do it in a way that he has to pay all of your court fees or walk away and wash your hands of the whole thing.

Best of luck making a decision - this sounds like a really frustrating situation.