Northern Oil & Gas, Inc. (NYSEMKT: NOG) is being trailed by the CEO it recently fired and a shareholder rights law firm.
Northern Oil & Gas, Inc. (NYSEMKT: NOG) decided to detach itself from Michael Reger, who served as its CEO. The company fired Reger after it learnt that he was being investigated by the SEC of alleged stock manipulation. However, Reger is has decided not to go down quietly. He has sued Northern Oil & Gas for wrongful dismissal.
When it terminated the employment of Reger, Northern Oil & Gas said that it didn’t think the outgoing CEO was entitled to any severance payment. But Reger has claimed in his lawsuit that nothing can be further from the truth. He is not only saying that he is entitled to severance pay, but also wants to be reinstated on the board of Northern Oil & Gas.
The company had removed him both as CEO and a member of its board of directors.
Stock manipulation scandal
The SEC said that it was investigating Reger in connection with a company called Dakota Plains Holding, where Reger is an early investor. The investigation relate to alleged stock manipulation at Dakota Plains.
Class action lawsuit – Northern Oil & Gas, Inc. (NYSEMKT: NOG)
Besides Reger suing its former employer Northern Oil & Gas, Inc. (NYSEMKT: NOG), the class action complained has also been filed against the company by a shareholder rights law firm called Robbins Arroyo LLP. The firm said that complaints against Northern Oil & Gas relate to the company’s keeping of a manager with questionable character while making filings that its officers and directors were people beyond reproach.
Robbins Arroyo LLP said a press release that the class action suit it is bringing against Northern Oil & Gas is on behalf of investors who acquired or owned shares of the company between March 1, 2013 and August 15, 2016.
Shares of Northern Oil & Gas, Inc. (NYSEMKT:NOG) plunged when news of Reger’s investigation and subsequent firing entered the market, thus destroying value for the class investors.
Northern Oil & Gas, Inc. (NYSEMKT:NOG) picked on its CFO Thomas Stoelk to take charge as caretaker CEO after it severed links with Reger.