Matthew Wang has filed a lawsuit against two individuals, Louis Lo and Robert Lo, and the nominal defendant Wealthy Ocean Investment, Inc., doing business as Shabu House. The complaint was electronically filed in the Superior Court of California, County of San Francisco on January 28, 2025. Wang accuses the defendants of multiple violations including breach of contract, embezzlement, negligence, and misrepresentation.
The case revolves around a series of business dealings that began in 2010 when Wang was introduced to Louis and Robert through a mutual acquaintance. They initially operated a business named Kasumi Corporation together but later transitioned to running a Shabu-style restaurant at the same premises. In 2012, they agreed to form a partnership for this new venture with an agreement that valued the lease and assets transferred from Kasumi at $100,000. However, tensions arose when Louis and Robert allegedly took out unauthorized loans totaling $350,000 without Wang's consent or knowledge. This loan was part of an Economic Injury Disaster Loan (EIDL) program meant to support businesses during economic hardships.
Wang claims he only discovered the existence of this loan in December 2022 through WOI’s bookkeeper. When confronted about the funds' usage, Louis and Robert reportedly refused to provide any information or compensate Wang for his initial investment. Furthermore, Wang alleges that promises made by Louis and Robert regarding revenue sharing and operational transparency were never fulfilled. He also accuses them of commingling company funds for personal use and locking him out of the business in April 2024.
The lawsuit lists numerous causes of action including breach of written and oral contracts where it is alleged that agreements were made not to exceed certain loan amounts which were violated by the defendants. Additionally, Wang accuses them of operating under false pretenses with claims such as intentional misrepresentation and civil conspiracy designed to defraud him out of his rightful ownership stake.
Wang seeks several forms of relief from the court including general damages for financial losses incurred due to these breaches, punitive damages for fraudulent actions committed by Louis and Robert, as well as legal fees associated with bringing this suit forward. The plaintiff requests an accounting from WOI to determine exact financial damages suffered due to their alleged misconduct.
Representing Matthew Wang are attorneys James C. Hann (#215778) and Lechelle Mercier (#350979) from Hann Law Firm based in San Jose, California. The case has been assigned Case No.: CGC-25-621883 under unlimited jurisdiction indicating that claimed damages exceed $35,000.