at the end of the day, they only lost their time, not money, and maybe some damage to their brand, but I doubt it. The lawsuit part is worrisome, but I don’t think it has any legs, unless someone got on their and said I guarantee you this investment is safe and will pay off. Most investments like that have a long disclaimer that investing is risky, and the investor knows full well he could lose his entire investment. So in the end, these guys did not really get hurt.
I don’t know how much they could lose in the lawsuit, but it will be a headache, and probably generate legal fees.