AP Enterprises LLC, along with Angeline Liu and Phillip Rash, have filed a lawsuit against Sima Enterprises, Inc., and its principals, Sima Hilde and Arnold Hilde. The complaint was lodged on April 8, 2025, in the Superior Court of California, County of Santa Clara. The plaintiffs accuse the defendants of multiple charges including intentional misrepresentation, concealment, negligent misrepresentation, breach of contract, express indemnity, conversion, unjust enrichment, and seek declaratory relief.
The lawsuit stems from the purchase of New Look Institute by AP Enterprises LLC from Sima Enterprises. According to the complaint, the transaction was based on fraudulent financial representations made by the defendants. Plaintiffs allege that they were provided with accounting documents that intentionally misrepresented the business's profitability. Specifically, it is claimed that customer payments for services under "12-Month Program Services" contracts were not properly classified as deferred revenue—a liability on a balance sheet—but were instead omitted entirely to inflate the business's apparent value.
Plaintiffs further assert that during due diligence they explicitly requested documentation of any obligations they would inherit post-sale. Defendants allegedly responded falsely by stating there were no such obligations apart from an office lease. However, it was later discovered that over one hundred clients had prepaid for services yet to be rendered—an obligation left undisclosed by defendants.
As a result of these alleged deceptions, plaintiffs claim they have incurred significant financial losses and personal distress. They argue that had they been aware of these liabilities beforehand—particularly the unfulfilled client contracts—they would not have proceeded with purchasing New Look Institute.
In their complaint, plaintiffs are seeking several forms of relief: special damages according to proof; general damages; compensatory damages for prorated contractual payments; punitive damages; attorney’s fees and costs; prejudgment interest; and a judicial determination clarifying parties’ rights and obligations under their agreement.
The case is being handled by Braden Bennett Law PC with Braden A. Bennett representing AP Enterprises LLC as well as Angeline Liu and Phillip Rash. The presiding judge is yet to be determined under Case No: 25CV462957.