$20,000,000 Possible - OR MORE - YOU BETCHA
1. OK Tauriga was damaged by the Company's auditor signing off on financials for six straight years. Post Madoff, an auditor was limited to signing off on financials for a period of five years.
2. Tauriga nearly $350,000 accounting/auditing fees for the years 2014 and 2015
3. Prior to receiving most of those fees the auditor was put on notice by that Tauriga (also another Company's) financials would not be accepted by the SEC
4. The auditor failed to disclose these notices to Tauriga - or return the fees paid.
5. Tauriga was de-listed from BB. Seth contacted Auditor repeatedly through emails, text phone calls to get the auditor to explain what happened and to return working PAPERS. Auditor never responded. Auditor did not return working papers. Eventually the auditor was ordered by federal judge to return working papers. The SEC realizing that the Tauriga was delisted due to the auditors malpractice has waived certain time requirements for Tauriga to be relisted once financials are completed. Re-read this. Even the SEC realizes that Tauriga and it's management was not responsible for the de-listing.
6. Seth acted appropriately by contacting the auditor by every means possible attempting to remedy the accounting issues as expeditiously as possible, and the auditor thumbing his nose at Tauriga and Tauriga's over 5000 shareholders the auditors malpractice caused Tauriga shareholders tremendous loss in share valuation, dilution, damage to reputation, delisting, stock liquidity ect ect. Seth contacted Cowan numerous times attempting to get the companies working papers back.
7. The auditor may have a defense against punitive damages if he acted expeditiously to return to Tauriga payments that were made for 2014 and 2015 and Tauriga's working papers. Auditor, Donald Cowan, managing director, would not respond to requests by Seth to return Tauriga's working papers. This guy is a complete scumbag. He should be enjoined personally in the suit and sued personally by Tauriga because his actions in failing to notify TAUG and return the Tauriga's working papers that he can be held personally responsible above and beyond the limits of the Auditor's liability coverage. Hopefully, after he is deposed Tauriga will add him personally as a Defendant. Cowan's actions, in and by itself, could reach the policy limits just in a PUNITIVE DAMAGE award.
8. Seth filed suit on behalf of Tauriga for malpractice against the auditor. I believe the auditor did not tell Seth about the issues with regard to the defects in the 2014 filing because he thought he could cure it. I believe the auditor still thought he was due money because he did work and that is why he did not return Tauriga's working papers. However, when it became apparent that the Company would be de-listed Cowan injured 5400 shareholders. If a jury awards Tauriga upwards of 10 million dollars in actual and punitive damages the policy limits of 6 million dollars would be exceeded. The auditing firm would be responsible for the balance and contrary to what some have stated, this accounting firm and it's partners have the assets to pay the balance. Moreover, this is just the claim against the auditor. If the insurance company put a value on Tauriga's claim that is so far removed from the actual damages a jury awards (10 million as an example) a judgment of bad faith claim could be multiples above and beyond the example of a $10 million dollar claim specifically to punish the insurance carrier. I would also enjoin the individual appraiser personally. It is my opinion that the auditor (Cowan) gave information that may or may not have been confidential to the Carrier in an attempt to access whether a low ball claim would be accepted. If a low ball offer was made, (mediation often times have offers) Seth again should be given credit for not being desperate.
9. The first mediation was scheduled and it was determined that professional valuation was needed.
10. The second mediation was scheduled and all its terms were confidential no settlement was reached. However, if valuations by both sides were presented and just the drop in market cap was considered the shareholder loss in stock value is more than the policy limits. Take any multiple average of what the stock was trading prior to Tauriga being delistied (ie 30 days 90 days, 180 days) and you will reach an average share price. Now do the same multiple after the stock was delisted and you will reach an average share price. Times those numbers by the number of shares outstanding on the date Tauriga was delisted , the figures are shocking. There has been serious dilution subsequent to the delisting.
11. I believe and offer was made by the insurance company that was nowhere near the claim Tauriga proffered. If that is true, and an 18 year old juror can do the math ob what the stock was trading for before and after the delisting, the Company should keep the petal to the metal and not even accept any settlement. If the Comapny wins a judgment of 10 million dollars that could be the multiple that the bad faith number will be based off. It would be wrong to think that a judgment against the auditor that exceeded the policy limits would be uncollectable. That auditor is a fairly large firm with assets and cash. The auditor Cowan, has personal assets.
12. I hope Seth takes into account the damage to shareholders personal losses. A jury hearing individual stories about how a shareholder could not sell stock to maybe pay a medical bill, pay off debt or even missing be able to invest in another opportunity. A jury hearing personal stories of the devastation individual shareholders suffered.
Go Seth.... If he wants us to do a shareholder derivitive action against the insurance company and Donald Cowan personally I am all in. And I have just the lawyer to do it.
