Wednesday, July 5, 2017

Looks Like Davis Knows He is Losing

Review of recent Nevada Court filings on  PacerMonitor reveals that Davis recently fired/replaced his Nevada lawyers.  PacerMonitor offers a valuable service for anyone interested in researching Federal Court cases, including non-lawyers.

The Nevada Court Case filings relating to defendant Michael Arlen Davis should be required reading for anyone interested in a detailed history of his activities around Cyanotech, and exploring what it might be like to do business with its "Dear Leader" Michael Arlen Davis (MAD).

MAD is being sued for failing to make proper disclosures relating to his holdings in Cyanotech, in particular the fact that he has been “Parking Securities" with Rudolf Steiner Foundation (RSF) since 2010.  

Can you believe that RSF is the company’s second largest shareholder, with 16.2% of all outstanding shares, and it has never paid a penny for any of those shares?  MAD bought and paid for every single share – yet, until he was sued by the company's third largest shareholder, he never disclosed to anyone that he and RSF were working together.
To date, Davis’ defense in the litigation has been mostly playing word games – he’s been caught dead to rights, but is trying to talk his way out of trouble by claiming it is Meridian that is the bad guy.  How dare they challenge Dear Leader’s absolute control over the company.
 Well, that strategy doesn’t seem to be working, so now Davis has hired someone that could quite possibly be the most expensive litigation attorney in his home turf of San Francisco. Anna Erickson White, of Morrison Foerster, apparently known in the trade as "MoFo", has more than 20 years of experience in securities and other complex, high-stakes civil litigation. In addition to her practice, Ms. White currently serves on the firm’s executive committee and board of directors. She has also twice served as a firmwide managing partner, from 2006 to 2009 and 2012 to 2015.