| In Trevor
Milton Trial Harvard Prof at $1250 an Hour
Says Tweets & Podcasts Didn't Move
Stock
By Matthew
Russell Lee, Patreon Maxwell
book
BBC -
Honduras
- CIA
Trial book - NY
Mag
SDNY COURTHOUSE,
Oct 3 –
The trial of Nikola founder
Trevor Milton for wire and
securities fraud moved, on
October 3 through the direct
to the cross examination of
the Harvard defense witness,
at $1250 an hour. Inner City
Press was there, and live
tweeted. Thread:
Milton's lawyer Brad Bondi: Here are
some tweets about hydrogen.
Ferrell: The movement of the stock is not
related to them. It's simply general market
forces.
Bondi: Here's another podcast, Fox Business.
What does it demonstrate? Ferrell: More of the
same.
Bondi: Here's "This Week in Start-Ups." What
does this show? Ferrell: The statements were
midday, but stock price was basically flat.
The market did not view the statements as
important.
Bondi: Trevor went on a lot of podcasts. Do
you consider them cumulatively?
Ferrell: Yes. I think one day is the
right way to view it. But even looking at two
days, it does not change. Bondi: Let's talk
about the US' expert Mayzlin.
Ferrell: Her analysis tells me zero about what
is important.
Bondi: No further questions.
Judge Ramos sends the jurors out on a break,
and here's argument on whether AUSA Roos can
cross examine Prof Ferrell about Nikola's
"corrective disclosures." Judge Ramos: We'll
deal with those in the regular course
AUSA Roos: Some of Professor Farrell's
colleagues are here in the courtroom. They
should not tell him what we have just
discussed. Judge Ramos: I assume that they
will not.
It emerges that Ferrell did - and was
presumably paid $1250 an hour for - event
studies into 2021, but they were not turned
over as part of the discovery process. Judge
Ramos: I'm going to take a break.
Jury entering! AUSA Roos: Professor
Ferrell, good morning. It's hard to tell in
here sometimes what time it is. Did you know
that Trevor Milton emailed that the stock
price went up after his media appearance?
Ferrell: Yes. AUSA: And Trevor Milton's
statements don't go into your model? Ferrell:
They do not. AUSA: And you're aware Mark
Russell the CEO said Milton in a board meeting
was talking about how he could move the stock
price. Bondi: Objection!
Judge Ramos: Overruled.
AUSA: Did you speak to any actual investors
who invested in Nikola in 2020? Ferrell: Not
to my knowledge. AUSA: Are you aware that
interviews with over 50 retail investors was
provided to defense counsel? Ferrell: I did
not know that.
AUSA: You know that Mark Schomberger said he
invested in Nikola because of Trevor Milton's
statements? Ferrell: Yes. AUSA: But that type
of information is not in your model, right?
Ferrell: It is not.
AUSA: In preparing your dissertation you
concluded that SEC filings important, right?
Ferrell: Yes. AUSA: But after your
dissertation, are you aware that YouTube was
founded in 2005, Twitter in 2006? Ferrell: Not
off-hand.
AUSA: You were hired after Mr. Milton was
indicted, right? Ferrell: Yes. AUSA: How many
times have you spoken with defense counsel
since then? Ferrell: I can't remember. We did
a lot of Zoom. AUSA: Your billing rate is
$1250 an hour, for half a million dollars,
right? Ferrell: Yes.
AUSA: So if I cut this cross examination
short, it would save some money, right?
Ferrell: It's up to you.
AUSA: You've testified for depositions 70 or
80 times? Ferrell: In the 20 years I've been
doing this. AUSA: Did it go down during the
pandemic? Ferrell: People are more comfortable
with Zoom now.
AUSA Roos: Are you aware that Mr. Babiarz
testified about the impact of the Badger
announcement? Ferrell: I recall that. AUSA:
And the line, "This is setting up for a
massive dive, one for the history books"?
Ferrell: That does refresh my recollection.
AUSA Roos: So when Milton replied to
criticism by saying, They're lying, it might
have delayed response in the stock price?
Ferrell: That misstates my view.
AUSA: So the additional study you did, did you
tell defense counsel about it? And can we have
a sidebar?
Now
re-direct of Milton's expert by his lawyer
Bondi. Bondi: Professor Farrell, please turn
to page 77 of Nikola's filing, starting
"recently we announced..."
Farrell: ..."the Nikola Badger. At this time
we do no expect to adopt production plans
unless" OEM.
Bondi: Your research finds that SEC
filings are key for investors. Does that
remain true in the era of Twitter and "Tesla
Charts" podcast, whatever that is?
Farrell: It does.
Judge Ramos: This brings us to the end of
the day.
The
case is US v.
Milton,
21-cr-478
(Ramos)
***
Your
support means a lot. As little as $5 a month
helps keep us going and grants you access to
exclusive bonus material on our Patreon
page. Click
here to become a patron.
Feedback:
Editorial [at] innercitypress.com
SDNY Press Room 480, front cubicle
500 Pearl Street, NY NY 10007 USA
Mail: Box 20047, Dag
Hammarskjold Station NY NY 10017
Reporter's mobile (and weekends):
718-716-3540
Other, earlier Inner City Press are
listed here,
and some are available in the ProQuest
service, and now on Lexis-Nexis.
Copyright 2006-2022 Inner City
Press, Inc. To request reprint or other
permission, e-contact Editorial [at]
innercitypress.com
|
,
