Using IRA methodology, thoroughly analyze the case summary below.You must enter your response as a text box below; you may not upload a word document.Be sure to proofread your work for organization, spelling and grammar - as well as content.

After William Thompson, Jr. ("Thompson"), Founder and Manager of Angel Enterprises, L.P. ("Angel Enterprises"), had inquired about investing in the film industry in the spring of 2012, Sonny Cooper contacted Thompson by phone in September of 2012, to ask him to consider making an indirect investment in films through Film Funding, LLC ("Film Funding"). Film Funding is in the business of making production loans to independent producers to fund a portion of the production costs to complete a picture. Cooper owns the entity Cooper Management, Inc. which contracts with Film Funding to provide management services.

Over the course of the following weeks, Thompson and Kim Bonnett, Angel Enterprises's Chief Financial Officer, talked to Cooper and Film Funding managers Diane Stollen and Danny Morrison about the Film Funding portfolio. Thompson met with Stollen and Morrison in Film Funding's office in California while on a business trip in September 2012, and Bonnett met with Cooper Management employees at Cooper Management's office in New York in October 2012. At those meetings, the Angel Enterprises representatives each were given spreadsheets representing that the loans in the Film Funding portfolio were in good financial health. The spreadsheets and an investment presentation were also emailed to Bonnett and Thompson at Angel Enterprises.

Throughout October 2012, there were repeated and regular emails directed to Angel Enterprises's representatives in Houston and phone calls between the parties. Based on the meetings, conversations, investment materials, and correspondence with Cooper, Stollen, and Morrison, Angel Enterprises ultimately decided to invest $10 million in exchange for an ownership interest in Film Funding, in two payments: (1) $7 million on October 31, 2012 and (2) $3 million on December 31, 2012.

One particular film, Toyz, had an $11 million loan from Film Funding and accounted for more than one-third of Film Funding's total investment portfolio.After completing the two payments, Angel Enterprises learned that Toyz was not commercially viable and that Cooper, Stollen and Morrison knew that Toyz's producer had defaulted on the loan on July 31, 2012, more than a month before Cooper asked Angel Enterprises to invest and fully three months before Angel Enterprises paid the first installment of its $10 million investment in Film Funding. Angel Enterprises further contends that before it made its investment, Cooper, Stollen and Morrison knew that Toyz had received poor reviews at an influential film festival, and that it was woefully behind on its production schedule but concealed these facts. Instead, they furnished to Angel Enterprises a spreadsheet in which Toyz was listed as financially sound and healthy with a note that said, "in sales mode-no reason for concern at present time."

Angel Enterprises sued Cooper, Cooper Management, Stollen and Morrison.Citation Omitted.

Discuss Angel Enterprises' claim(s) and the defendants' response(s).