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Superior Court of Worcester County, Massachusetts (docket no. 82-
22879). The plaintiffs alleged that petitioner and the others
had: (a) Conspired to terminate the business of Northeast and to
appropriate for themselves the business, goodwill, and assets of
Northeast; (b) created false invoices; (c) caused Northeast to
breach contracts with suppliers and thereby lose future profits;
(d) taken equipment and funds of Northeast; and (e) made
misrepresentations to Zayre which caused it to buy and
immediately pay for a million pounds of premium paper.
In the complaint, the plaintiffs alleged that Northeast owed
them $2,958,720.24 when it stopped doing business. They alleged
that, at the time the complaint was filed, Northeast owed
$561,530.53 to the bank, $406,812.39 to Zayre, and $946,132.33 to
CNI. The complaint does not explain why those amounts totaled
less than the plaintiffs alleged Northeast owed when it stopped
doing business. The plaintiffs alleged that petitioner was
liable for Northeast's debts to the bank because he and McKee had
signed guarantees.
The bank also sued petitioner, McKee, McKee's wife, and
Northeast in the Superior Court of Worcester County,
Massachusetts, for the indebtedness of Northeast on the line of
credit (docket No. 82-22880). We sometimes refer to these cases
as the Northeast litigation.
Petitioner denied the allegations and made counterclaims,
cross-claims, and third-party claims. He contended that the
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