The only issue before the Court in this case was whether it should dismiss plaintiff’s unfair and deceptive practices claim. Plaintiffs had sought to raise money to recapitalize their business. Defendants had promised to provide the necessary capital, but then reneged on their commitment. Plaintifs suffered a loss as a result, and sued on a variety of theories, including unfair and deceptive practices.
The Court held, reluctantly, that the only relevant question was "whether the transactions at issue involved securities or other financial instruments involved in raising capital." The Court held that they did. Therefore, the transaction was not one "in or affecting commerce" under the statute.