United States District Court for the Southern District of New York · 2018-12-10
15usc78j: author: Flash3 · QA: FIX (Fable, neov2/cases/TRIAGE-Flash.md)
Case and law context
Role: applied; posture: private securities fraud class action; motion to dismiss second amended complaint under Rule 12(b)(6) and PSLRA granted with prejudice; result: claimant-lost; claim:
Uncertainty
None recorded
Misfit
None recorded
B · Case × element grid
Top-level elements follow claim order in panels of up to six elements. Case rows repeat across panels. Every recorded block retains its holding and basis; multiple blocks are not merged into a case-level verdict. ✓ satisfied · ✗ not satisfied · ○ not reached · · not addressed. Muted blocks are not counted. Sub-element evidence remains on case and element pages.
Elements 1–6 of 12
| Case | Statutory commerce, mails, or exchange facility | Section 78j(b) rulemaking hook | Materially false statement or misleading half-truth | Importance to a reasonable investor | Intent to deceive, manipulate, or defraud | Connection with a covered securities or swap transaction |
|---|---|---|---|---|---|---|
| Fries v. N. Oil & Gas, Inc. — 354 F. Supp. 3d 384 (2018) · United States District Court for the Southern District of New York · 2018 (15usc78j: author: Flash3 · QA: FIX (Fable, neov2/cases/TRIAGE-Flash.md)) | · not addressed | · not addressed | · not addressed | ✗ not · pleadedNot counted: applied/alternative | · not addressed |
Elements 7–12 of 12
| Case | Private plaintiff's purchaser or seller status | Private investor transaction causation | Actual economic loss in private damages action | Causal connection between fraud and economic loss | Fraudulent scheme or deceptive course of business | Additional criminal mental-state requirement |
|---|---|---|---|---|---|---|
| Fries v. N. Oil & Gas, Inc. — 354 F. Supp. 3d 384 (2018) · United States District Court for the Southern District of New York · 2018 (15usc78j: author: Flash3 · QA: FIX (Fable, neov2/cases/TRIAGE-Flash.md)) | · not addressed | · not addressed | · not addressed | · not addressed | · not addressed | · not addressed |
Instances and excluded annotation blocks
| Case | Element | Holding and scope | Pattern | Exact source quotations |
|---|---|---|---|---|
| Fries v. N. Oil & Gas, Inc. — 354 F. Supp. 3d 384 (2018) · United States District Court for the Southern District of New York · 2018 — not · pleaded (15usc78j: author: Flash3 · QA: FIX (Fable, neov2/cases/TRIAGE-Flash.md)) | Intent to deceive, manipulate, or defraud | not Excluded from merits counts applied / alternative basis: pleaded; party: Northern Oil and Gas, Inc. and officers; count: class action securities fraud; subject: party=Northern Oil and Gas, Inc. and officers; count=class action securities fraud Alternative holding: knowing the facts that (on plaintiff's theory) had to be disclosed is not the same as knowing the 10-Q statements were misleading; motive was alleged only conclusorily. | confidential witness places knowledge of the underlying misconduct years before the challenged filings; nothing about state of mind when the filings were made | (4) Northern's board members knew that its resources were being allocated to Dakota Plains.Source: docroot/ir/caselaw/f_supp_3d_354.jsonl#/f-supp-3d/354/0384-01; Unicode character offsets [24762:24853] (end exclusive); SHA-256 d8d593f40b5d3d74147b50a31be364b6df5222a657bfefcc659f4913a5ce5025.Indeed, CW1's allegations all concern events occurring years before the allegedly misleading statements were made.Source: docroot/ir/caselaw/f_supp_3d_354.jsonl#/f-supp-3d/354/0384-01; Unicode character offsets [25558:25672] (end exclusive); SHA-256 d8d593f40b5d3d74147b50a31be364b6df5222a657bfefcc659f4913a5ce5025.The SAC cites no facts showing that Defendants engaged in conscious or reckless behavior in making the contested Form 10-Q disclosures.Source: docroot/ir/caselaw/f_supp_3d_354.jsonl#/f-supp-3d/354/0384-01; Unicode character offsets [25422:25557] (end exclusive); SHA-256 d8d593f40b5d3d74147b50a31be364b6df5222a657bfefcc659f4913a5ce5025.To satisfy the PSLRA's pleading requirements for scienter, a plaintiff must allege facts with particularity that would give rise "to a strong inference that the defendant acted with the required state of mind."Source: docroot/ir/caselaw/f_supp_3d_354.jsonl#/f-supp-3d/354/0384-01; Unicode character offsets [20758:20968] (end exclusive); SHA-256 d8d593f40b5d3d74147b50a31be364b6df5222a657bfefcc659f4913a5ce5025.Even if Plaintiff had sufficiently alleged a misstatement or omission in the SAC, his claims would nonetheless fail because he has not sufficiently alleged scienter.Source: docroot/ir/caselaw/f_supp_3d_354.jsonl#/f-supp-3d/354/0384-01; Unicode character offsets [20175:20340] (end exclusive); SHA-256 d8d593f40b5d3d74147b50a31be364b6df5222a657bfefcc659f4913a5ce5025.Consequently, as it did for the FAC, the Court finds that Plaintiff fails to establish the requisite scienter under § 10(b) and Rule 10b-5.Source: docroot/ir/caselaw/f_supp_3d_354.jsonl#/f-supp-3d/354/0384-01; Unicode character offsets [25873:26012] (end exclusive); SHA-256 d8d593f40b5d3d74147b50a31be364b6df5222a657bfefcc659f4913a5ce5025. |
| Fries v. N. Oil & Gas, Inc. — 354 F. Supp. 3d 384 (2018) · United States District Court for the Southern District of New York · 2018 — not · pleaded (15usc78j: author: Flash3 · QA: FIX (Fable, neov2/cases/TRIAGE-Flash.md)) | Materially false statement or misleading half-truth | not Counted merits instance applied / merits basis: pleaded; party: Northern Oil and Gas, Inc. and officers; count: class action securities fraud; subject: party=Northern Oil and Gas, Inc. and officers; count=class action securities fraud District court holds Northern Oil had no duty to disclose its own uncharged, unadjudicated wrongdoing merely because its 10-Qs acknowledged the SEC investigation of Dakota Plains: the filings were literally true, did not deny illegal conduct, and stated no misleading opinion. The Code-of-Ethics and CEO-praise theories were rejected again for the reasons given in the earlier opinion (285 F.Supp.3d 706). | 10-Q acknowledges an SEC investigation of an affiliate and says the company is not its focus; company's own uncharged involvement not disclosed | Based on the information available to it, the Company does not believe that it, or any conduct by the Company, is the focus of any investigation by a governmental agency regarding this matter.Source: docroot/ir/caselaw/f_supp_3d_354.jsonl#/f-supp-3d/354/0384-01; Unicode character offsets [14479:14671] (end exclusive); SHA-256 d8d593f40b5d3d74147b50a31be364b6df5222a657bfefcc659f4913a5ce5025.Second, Defendants knowingly used Northern's staff, space, and resources to help Reger and Dakota Plains, including by facilitating some of Reger and Dakota Plains's misconduct.Source: docroot/ir/caselaw/f_supp_3d_354.jsonl#/f-supp-3d/354/0384-01; Unicode character offsets [1713:1890] (end exclusive); SHA-256 d8d593f40b5d3d74147b50a31be364b6df5222a657bfefcc659f4913a5ce5025.The SEC indeed was not investigating Northern Oil.Source: docroot/ir/caselaw/f_supp_3d_354.jsonl#/f-supp-3d/354/0384-01; Unicode character offsets [18048:18098] (end exclusive); SHA-256 d8d593f40b5d3d74147b50a31be364b6df5222a657bfefcc659f4913a5ce5025.The failure to disclose material information does not amount to an actionable misrepresentation, absent a duty to disclose.Source: docroot/ir/caselaw/f_supp_3d_354.jsonl#/f-supp-3d/354/0384-01; Unicode character offsets [10908:11031] (end exclusive); SHA-256 d8d593f40b5d3d74147b50a31be364b6df5222a657bfefcc659f4913a5ce5025.A reasonable investor would not understand the fact the SEC is not investigating Northern Oil to mean that Northern Oil did not do anything wrong.Source: docroot/ir/caselaw/f_supp_3d_354.jsonl#/f-supp-3d/354/0384-01; Unicode character offsets [18467:18613] (end exclusive); SHA-256 d8d593f40b5d3d74147b50a31be364b6df5222a657bfefcc659f4913a5ce5025.Consequently, as it did for the FAC, the Court finds that Plaintiff fails to allege an actionable misstatement or omission by Defendants.Source: docroot/ir/caselaw/f_supp_3d_354.jsonl#/f-supp-3d/354/0384-01; Unicode character offsets [20025:20162] (end exclusive); SHA-256 d8d593f40b5d3d74147b50a31be364b6df5222a657bfefcc659f4913a5ce5025. |