The suit, filed by 87 individuals, accused Entrepreneur of gross negligence for including Agape World on its Hot 100 list in its May 2008 issue. According to the complaint, the plaintiffs invested money in Agape after seeing the company on Entrepreneur‘s list. Agape’s CEO, Nicholas Cosmo, was later arrested and the company was revealed to be a Ponzi scheme. The plaintiffs are seeking $178 million from Entrepreneur‘s publisher, Entrepreneur Media.
In its motion seeking dismissal of the suit, Entrepreneur pointed out that its Hot 100 list is not supposed to be used as a basis for investment strategy.
“The ‘Hot 100 at a Glance’ was offered as informative material to a general audience of readers and neither draws any conclusions nor makes any recommendations to its readers, as to the financial suitability of an investment in any of the listed companies,” the motion explained.