In a striking legal battle, a mother-and-son business duo is taking on a property owner and his associated companies over alleged fraudulent activities that have left their spa business in ruins. Shu Zhao, along with her son Liu YunZhaoze and their company Rejuv Spa & Boutique LLC, filed a complaint on February 28, 2025, in the Superior Court of California, County of Santa Clara against Richard So, RS Investment LLC, and Richard So Insurance Agency Inc., accusing them of fraud, wrongful eviction, and other serious allegations.
The plaintiffs claim that they were lured into a commercial lease under false pretenses by Richard So and his companies. According to the complaint, So misrepresented material terms of the lease for a property located at 180 Blossom Hill Rd., San Jose. The plaintiffs allege that they were coerced into expensive renovations exceeding $70,000 under threat of eviction and were subsequently locked out unlawfully from the premises. "Defendants lured Plaintiffs into a commercial lease by misrepresenting material terms," states the complaint. The plaintiffs argue that these actions were part of an orchestrated scheme to unjustly enrich So at their expense.
The lawsuit details multiple causes of action including fraud, economic duress, wrongful eviction, unlawful business practices, breach of contract, gender discrimination under the Unruh Act, and defamation. The plaintiffs assert that So demanded excessive hidden fees totaling nearly 50% of the monthly rent and required them to purchase business insurance through his agency without providing any documentation or policy number. Furthermore, they accuse So of making sexually harassing remarks and engaging in discriminatory conduct based on gender.
Seeking justice for what they describe as egregious acts perpetrated by So and his entities functioning as alter egos for personal gain, the plaintiffs are demanding injunctive relief to restore possession of their leased property. They also seek compensatory damages exceeding $150,000 and punitive damages over $1 million to punish the defendants for their alleged misconduct. Additionally, they request reformation or rescission of contracts tainted by fraud or undue influence.
Represented by attorney Anthony M. Rubio from Anthony Rubio Law based in Newark, CA., the plaintiffs are determined to hold Richard So accountable for what they describe as fraudulent exploitation targeting small-business owners like themselves. The case is presided over by Judge Y. Chave under Case No. 25CV460034.