Spokane, Washington- July 28, 2019 – Bakken Resources Inc. (OTC: BKKN) proposed terms to dismiss a shareholder derivative lawsuit that was filed in March 2014. The proposed terms stipulate that the lawsuit be dismissed with prejudice with each party bearing the costs of the dismissal.
The derivative action was filed in March 2014 against Management, Directors, and General Counsel of the company. In September 2016, all the defendants were dismissed except for Val Holms. The complaint alleges that Val Holms breached his fiduciary duties, was grossly negligent, and committed waste in approving and calculating payment of an excessive overriding royalty to Holms Energy LLC., and that he failed to tender to the company’s insurer, Scottsdale Insurance Company, certain lawsuits filed against the company. The complaint also alleges civil conspiracy regarding the payment of the overriding royalty interest to Holms Energy LLC. The proposed dismissal dismisses Val Holms as a defendant and the company as a nominal defendant.
A hearing to approve the stipulation for dismissal is scheduled for August 21, 2019 at 2 p.m. in the Second Judicial District Court, Washoe County, at 75 Court Street, Reno, Nevada 89501. Current company shareholders who have no objection to the proposed dismissal need not take further action. Any current company shareholders who wish to be heard concerning the dismissal may, but is not required to, enter an appearance in this suit, and be represented by counsel and present evidence or argument.
The NOTICE OF DISMISSAL OF SHAREHOLDER DERIVATIVE ACTION AS TO DEFENDANT VAL HOLMS, AND HEARING PURSUANT TO FPCP 23.1 includes instructions for the submission of objection and evidence of such. This document is attached below.