Greenshift Corporation (GERS)

[Harry Winston]

The Greenshift Corporation was issued a collection of U.S. Patents covering the extraction of corn oil from the plant, the production of biodiesel, and the recovery of lignin. Those materials include biofuels and various forms of plastic. Greenshift entered into licensing deals that gave them a revenue stream based on those licenses.

Sometime later, Greenshift filed a lawsuit that accused some corporations of infringing on their patents. If their accusations were true, Greenshift was losing out on some income that were going to the infringing companies. This is more information about the infringement

The case was heard in a Federal District Court, but that judge, now deceased, ruled against Greenshift. This is a 233-page Summary Judgement that was made on October 23, 2014. It names 12 related cases, some of which were not decided that day because there were counter-claims, according to the very last paragraph in this document. This Summary Judgement did, however, announce the rulings on 65 (I counted them) separate motions, most of which were unfavorable to Greenshift.

Many people believe that the original judge made some errors, so Greenshift filed an appeal to the Federal Appeals Court for the 11th Circuit, located in Atlanta, Georgia. They asked all the parties who were involved in this lawsuit to negotiate a settlement.

For many months, the parties, including Greenshift, did negotiate, but no settlement was ever agreed upon. The parties formally told this to the Appeals Court last month. Greenshift's formal appeal was filed at that time.

Millions of cases are filed in U.S. District Courts all around the country. A small fraction of them are appealed to Federal Circuit Courts, where the appeals are heard. That is where the case is now.

Only a very tiny fraction of those cases are ever brought to the U.S. Supreme Court, so regardless of the outcome of the appeals case, it's almost certain that this will be the final outcome of the case.

One regular poster has made a commitment to go to the Appeals Court and report to us on this board what he sees and hears. Most but not all of what has happened with the case is available on an electronic search service called PACER (Public Access to Court Electronic Records), but Greenshift's appeal was not one of them. However, this is the 529-page PDF-format text of Greenshift's filing. That document is linked on the home page of Greenshift website.

As I said, there is a very high probability that this case will end with the ruling by the Appeals Court. There is a lot of money involved, including the income that went to the companies that are accused of infringing on Greenshift's patents, but these companies spent a considerable amount of money on their own legal teams as well. IMHO, whatever company loses this case in the Appeals Court is likely to be forced by their lack of financial resources to go bankrupt, leaving the winners to collect the customers that the losers used to have in addition to the license revenue that the court awards to them.

This case is a small fish in the ocean of energy companies. One large, well-known oil company is already a Greenshift customer.

Another consideration is Greenshift's financing. As stated by Kevin on this board, General Electric backed out of an arrangement that would've provided Greenshift with some badly-needed revenue, so Kevin, as the CEO, scrambled to find other sources. He, his family, and his friends invested their own money in this company, so you know that they're dedicated to keeping Greenshift alive. If, as expected, this case is decided in Greenshift's favor, it's likely that they and the other common-stock investors will see a multiplication of the price in a very short time. This is a gamble, but I am one of those common-stock investors. I wasn't always, because for well over a year, there was literally no information about this company coming from the company, but that has changed. This is a very informative message on this board, posted by Kevin. I am now bullish on Greenshift's future, and I will remain bullish as long as reliable information about this company continues to be produced.

"Harry Winston", a message board pseudonym for a living investor