Legal Question in Investment Law in California

A lawyer would begin by examining the approach made by the promoters, mainly to verify that there was actual deception and not merely a semi-misguided attempt to put together a group of like-minded investors and then form the LLC. The borderline between sloppy business practices and actionable fraud is often vague. Did they actually represent that the LLC was formed? Why, then, is the fact that it wasn't formed material? Did the promoters mean well at the time? Whether it's worth suing depends upon both being able to establish bad intent at the time and finding defendants able to respond in damages. With a $5,000-area claim, I'd suggest considering small claims court and review one or more of the paperback self-help law books on California small-claims cases and procedures.