| After
Fraudster Gilbertson Dakota Plains Cited
Scienter Now Reger Is Crossed on Articles
By Matthew
Russell Lee, Patreon
BBC
- Guardian
UK - Honduras
- ESPN
SDNY COURTHOUSE,
June 7 – Bankrupt oil
company Dakota Plains Holdings
is seeking to decertify a
class of investors suing for
fraud after Dakota's Ryan
Gilbertson was convicted of
stock manipulation.
On
December 21, 2020 in the U.S.
District Court for the
Southern District of New York
there was a proceeding. Inner
City Press covered it, and
live tweeted some of it, here:
First up is
Michael Rowe, saying there
were other reasons for Dakota
Plains' collapse, including a
train crash near
Montreal.
Now argument
turns to "Daubert" - that is,
experts. Oral argument bingo:
scienter.
Now Mr. [Karl
Jon] Breyer: Both Reger and
Gilbertson both denied they
owned more than 5% of the
companies stock...
The
officers and director did the
best as they could, they found
nothing they had to disclose
to the public, they don't have
to disclose suspicions
Plaintiffs'
counsel: Our exhibit 119 is
what the officers and
directors privately disclosed
to the SEC about what they
said was securities fraud by
Gilbertson... That should be
sufficient to defeat this
motion.
On August 4,
Judge Jed S. Rakoff held a
proceeding, after reading a
jury his legal instructions in
US v. Sidney Scales. For this
case, a trial date had to be
selected.
One of the
lawyers said two weeks in
December were not possible.
Judge Rakoff asked, Why not?
The lawyer said, a vacation in
Hawaii.
Judge
Rakoff joked, then the trial
would have to be moved to
Hawaii in December.
On January 14, 2022
Judge Rakoff held a conference
with the parties to discuss
the upcoming trial. Counsel
for the Officer and Director
Defendants posed a lot of
questions about how COVID
could impact the trial, and
asked if additional jurors
will be sat.
And on June 6, it
began. As he usually does,
Judge Rakoff very quickly
selected the jury. Then there
was testimony about how
promising Dakota Plains'
business seemed, moving oil
from the Dakotas by train to
Philadelphia and elsewhere,
how Jena Smith talked it up.
Meanwhile, Inner
City Press obtained documents
labeled confidential from a
previous case, on Patreon here.
On June 7, Mike
Reger was on the stand, being
grilled on cross examination
about articles and his emails
about press releases, before
the market opened. His own
counsel barely objected and
the word "potted plant" was
heard.
Plaintiff attorney Steven
Molo questioning defendant Michael Reger,
courtesy of Elizabeth Williams
We'll have more
on this.
The case is Jon
D. Gruber v. Ryan R.
Gilbertson, et al., 16-cv-9727
(Rakoff)
***
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