Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, February 20, 1991                   TAG: 9102200279
SECTION: VIRGINIA                    PAGE: B3   EDITION: METRO 
SOURCE: LESLIE TAYLOR STAFF WRITER
DATELINE:                                 LENGTH: Medium

OPTICAL CABLE SETTLES SUIT WITH EX-INVESTOR

Rajan Raj had alleged securities fraud and claimed he received less money than he was entitled to for his one-quarter ownership.

The case was settled on the second day of what had been scheduled as a five-day jury trial in U.S. District Court in Roanoke. Raj, a Georgia resident, settled for an undisclosed amount in his lawsuit against the company; its president, Bob Kopstein; and chief executive officer, Bob Thompson.

Raj had sued for $7 million, claiming that Thompson and Kopstein misrepresented the value of the company.

"He was lied to, was stolen from and was pressured," Richmond lawyer Don King told seven jurors in his opening argument Monday. "And you can't lie and steal and pressure your stockholders."

Eight years ago, Kopstein and Thompson had the idea to tap into the then-budding technology of fiber-optic cables.

The men decided to start a company that would manufacture the slim glass fibers, traditionally used in the long-distance telephone industry. But they needed money, King said.

For start-up funds, they approached two potential investors. Both - including Raj, who was a friend of Thompson's - agreed.

Each put in $180,000, giving them roughly one-quarter ownership each in what became the Optical Cable Corp., King said.

In its first year, OCC turned a $39,000 profit. By the second year, the company took off, showing a pre-tax profit of $1.6 million, King said.

After that, problems began, Raj alleged. Differing views caused his relationship with Thompson and Kopstein to deteriorate, and they ultimately bought out the other two investors.

Raj, though under enormous pressure to sell, was able to turn his initial investment into $1.6 million, King said.

But defense attorneys argued that Raj had little reason to contest, in that Thompson and Kopstein had made him a millionaire in three years.

"This business is one that is delicate and competitive," said Roanoke lawyer Jim Guynn Jr. in his opening argument. "There was never a scheme to drive Raj out."

John Fishwick Jr., who was Raj's local attorney, said Raj was pleased with the settlement. Thompson and Kopstein did not admit any liability, Fishwick said.