Conversation so far:
When did Badfinger's signing to Apple happen?
Beatles roadie/assistant Mal Evans and Apple Records' A&R head Peter Asher saw the Iveys perform on 25 January 1968. Evans signed the Iveys to Apple on 23 July 1968.
Who was the businessman Stan Polley?
New York businessman, Stan Polley, signed Badfinger to a business management contract in November 1970.
What prompted Stan Polley to sign Badfinger to a contract?
Polley established Badfinger Enterprises, Inc. This signed the band to contracts dictating that receipts of touring, recording, publishing and even songwriter performance royalties would go into companies controlled by Polley.
Were the members of Badfinger happy with their partnership with Stan Polley?
This led to a salary arrangement for Badfinger, which various members later complained was inadequate in comparison to their gross earnings.
What else did you find interesting about Badfinger's Wikipedia article?
Although Polley's professional reputation was admired, his dubious financial practices eventually contributed to Badfinger's downfall.

Question: Was Stan sued for their downfall?
Self-contained rewrite: Was Stan Polley sued for Badfinger's downfall?