Consumer Law
An Oil Company Founder is Held Liable In a Stock Fraud Class Action Lawsuit
A New York federal jury on Tuesday found Dakota Plains Holdings Inc. co-founder Michael Reger liable for securities fraud but not for insider trading, capping an investor class action accusing the defunct oil transloading company’s officers and directors of engaging in a stock manipulation scheme.
The jury found that Reger was liable for one claim of securities fraud as well as one claim of control person liability for the company’s securities fraud. But it declined to find him liable for a claim of insider trading, according to the verdict form.
