Krause, Kalfayan, Benink & Slavens, LLP Achieves Class Certification in Action Against Bakken Resources, Inc.
On January 17, 2013, an investor, represented by Krause, Kalfayan, Benink & Slavens, LLP, filed a securities class action lawsuit against Bakken Resources, Inc., a publicly traded mineral rights holding company, (f.k.a. Multisys Language Solutions, Inc.) (“Bakken”). After briefing and a hearing on December 3, 2013 in Las Vegas, Nevada, the Court granted Plaintiff’s motion to certify the case as a class action. Notice is expected to be sent to class members in the coming weeks. The Class Definition is as follows:
“All persons who invested in Bakken Resources, Inc. (f.k.a. Multisys Language Solutions, Inc.) common stock pursuant to its private placement memorandum dated June 28, 2010.”
The Court appointed Plaintiff as the representative of the Class, and appointed Krause, Kalfayan, Benink & Slavens, LLP as Class Counsel.
What is this action about?
A Bakken investor filed this action on his own behalf and on behalf of others similarly situated. Plaintiff claims that Bakken broke promises to Plaintiff and all Class Members to seek to register shares it sold to them.
The shares of common stock that Bakken sold to investors in a private offering pursuant to the 2010 PPM were restricted, meaning that investors were restricted from selling their shares unless and until a registration statement covering their shares became effective or until investors met the requirements of an exemption to the registration requirement.
Under the terms of the 2010 PPM, specifically a Registration Rights Agreement, Bakken promised all class members that, within six months after the transaction closed, it would file a registration statement with the Securities and Exchange Commission, that would allow all class members to freely sell their shares. If it failed to register the stock issued to shareholders within the required time, it promised to pay investors reasonable liquidated damages of 1% of their principal investment for each 30-day period that it failed to do so. Class members paid Bakken a premium for their shares based upon this promise.
Plaintiff alleges that Bakken never filed a registration statement covering the common stock issued to class members pursuant to the 2010 PPM as promised. Plaintiff seeks to recover damages on behalf of himself and all class members.
Bakken continues to deny that it breached the Registration Rights Agreement and asserts a number of defenses. For example, it contends that it filed a registration statement in 2010 that satisfied its obligations, even though it admits that the registration statement does not expressly cover the common stock issued to class members pursuant to the 2010 PPM. Bakken also asserts that, even if it did breach the Registration Rights Agreement, no class member has been damaged.
Krause, Kalfayan, Benink & Slavens, LLP is a boutique San Diego law firm that represents investors in commercial and securities litigation. Questions? Contact: Vincent D. Slavens (firstname.lastname@example.org), 550 West C Street, Suite 530, San Diego, California 92101; Tel: 619.232.0331; Fax: 619.232.0331; www.kkbs-law.com/people/vincent-d-slavens/