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concluded, therefore, that the applications and markets based on
the recycled pellets were never seriously contemplated.
Grossman did not specifically value the Sentinel EPE
recycler. However, as previously stated, Grossman concluded that
existing technology provided equivalent capability for recycling
polyethylene. Moreover, Grossman reported that information
regarding the status of recycling in the plastics industry in
1981 was already well documented. Grossman reported further that
an individual investor would have had little or no difficulty in
confirming the invalidity of the claims in the private offering
memorandum and, in particular, the claims of Ulanoff and Burstein
suggesting that the Sentinel EPE recycler was unique.
2. Lindstrom
Lindstrom graduated from the Massachusetts Institute of
Technology with a bachelor's degree in chemical engineering.
From 1956 until 1989, Lindstrom worked for Arthur D. Little,
Inc., in the areas of process and product evaluation and
improvement and new product development, with special emphasis on
plastics, elastomers, and fibers. At the time of trial,
Lindstrom continued to pursue these areas as a consultant.
In his report, Lindstrom determined that in 1981 several
different types of equipment capable of recycling expanded
polyethylene were available and priced at approximately $50,000.
Lindstrom found that, on the basis of his research, "there were
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