That is an interesting question. Currently, NIR is liquidating
some of the funds it manages because there is not enough of any
money to pay to NIR's investors. However, NIR has recently won a
suit against another company, with the planned dilution of that
company's stock to commence between the 1st to the 15th of May.
NIR is having financial problems, there is no doubt, and they are
facing a growing number of lawsuits, both from companies that they
have funded (and hurt), but also from their own investors, who
have also been hurt by NIR's rather illicit practices. As for the
lawsuit with HLNT, the judge has set an on or before date of the
28th of April for providing her decision on the Motions by NIR and
Humphries. We should be looking for the publication of those de-
cisions after the 15th but no later than the 28th of April. NIR
has won almost every suit, until it ran into HLNT, because NIR was
good about writing binding agreements based upon contract law. In
many of the suits that NIR won, there was not enough to prove that
NIR had done anything wrong. That all changed when Humphries was
booted out of SSEV(HLNT previously) and was not able to destroy all
the documents and evidence that proved that NIR, within a conspiracy
including Humphries and the previous CEO, Walters, committed fraud
in the transfer of Notes from the Company DLAD to SEVO (again,
before being renamed HLNT). NIR has tried to use a defense that
basically says that they (NIR) may be guilty, but because of the
actions of Humphries (and really Walters as well), that HLNT is
just as guilty, and therefore should not be able to get out of
paying the notes. However, though a counter defense, HLNT could
show that neither Humphries or Walters truely represented HLNT,
and therefore NIR's defense should be decided as invalid. When
the Motions are denied, as they should be, the next step should
be obtaining any further evidence from Humphries through discovery
and getting depostions from NIR employees, Ribotsky, Humphries,
Walters, and a bunch of others, in preparation for the trial. This
process should be completed by late May, then the trail will start,
provided there are no other delaying Motions by NIR. The trial
phase shouldn't take more than two weeks as a large amount of the
evidence has already been determined and the Arguments for the
Motions have already been a test of some of that evidence. The
Judge will then make a decision, which probable means that the
decision will be delivered sometime between the middle of June
and the Middle of July, at which time it will be interesting to
see what damages will be awarded to HLNT.
This is the important turn of events, regarding the decision on
the Motion on the 28th of this month. A judge will not uphold a
motion unless that Judge believes that the movant (in this case,
NIR) will most certainly win if it goes to trial. NIR could not
win at trial, as the evidence (even though NIR refuses to acknow-
ledge the evidence as a defensive tactic) clearly shows that NIR
participated in actions that are defined as "Fraud in the Induce-
ment", and subsequently caused damages to HLNT. So, when the
Judge decides against NIR, as she should, that will essentially mean
that HLNT is going to win in the trial. That decision should pretty
much remove the black cloud over HLNT caused by NIR, and MM's
and investors sitting on the sidelines will see that as the indicator
that HLNT is going to succeed.
As usual, the opinions expressed within are my own and each reader
should do their own due diligence and make their own investment
decisions.
