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management and organizational development and by various
managerial achievements as well as the highly responsible
position to which he rose during his career as a result of his
ability.
Thornsjo met Schluter and retained his services as a C.P.A.
sometime during 1978. Prior to 1982, Thornsjo had invested only
small amounts in the stock market. In 1982, Thornsjo learned
about Hamilton from Schluter. However, Thornsjo did not receive
or review Hamilton’s offering memorandum. Instead, Thornsjo met
with Schluter a number of times and discussed the offering
memorandum with him. During these discussions, Schluter
explained that Hamilton was involved in a high-risk business.
Schluter also told Thornsjo that he had reservations regarding
the recyclers’ valuation.
During one of these discussions, Schluter gave Thornsjo a
sample of recycling material. Thornsjo contends that he took the
sample to a chemical engineer at Honeywell. Thornsjo asserts
that this Honeywell engineer told him that there were no other
plastics recycling machines on the market. Thornsjo also
contends that he consulted with a colleague who was familiar with
investments. Thornsjo claims that his colleague told him that
investing in startups held risks but generally made sense. At
trial, Thornsjo did not provide any details regarding the
engineer’s or his colleague’s background or their familiarity
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