Nader Sherif met Mel at a dinner party in 2007. According to the lawsuit, Nader claims Mel started jawboning him about a Malaysian company called Green Rubber, which developed a technology to devulcanize rubber so old tires could be recycled.
Sherif claims Mel tried convincing him to invest $200,000 in the company -- his entire life savings. Sherif says he was resistant, but someone from the company who was present at the dinner assured him the company would re-purchase Sherif's stock for the full face value whenever Sherif wanted.
But Sherif was still uneasy, telling Mel he had just had a child and could not afford to lose money. Sherif alleges Mel -- who is a "significant investor" in the company -- then told him if the company wouldn't make good, Mel would buy the shares from Sherif for the full $200,000.
Short story -- Sherif was going through hard financial times and wanted Green Rubber to buy his stock back. Sherif claims the company repeatedly refused to do so, and he then went to Mel, who allegedly ignored his demand.
Sherif is suing for $200,000 plus interest. We could not reach Mel's rep for comment.
Here's a video of Mel back in 2008 -- presenting an award to the CEO of Green Rubber at the Global Green Sustainable Design Awards.