Northern Oil and Gas Inc. (NYSE American: NOG) has entered into an agreement to settle the lawsuit brought against the company by its former CEO and founder, Michael Reger. In addition to receiving three million shares of Northern Oil and Gas stock, Reger will be named chairman emeritus.
The Minnesota-based company terminated Reger as Northern's CEO in August 2016 and removed him from the board of directors after Reger received a “Wells Notice” from the staff of the Securities and Exchange Commission (SEC) in connection with a then-ongoing investigation of 2012 trading patterns in the securities of Dakota Plains Holdings Inc. in which Reger was an initial investor in 2008.
Upon Reger’s termination, Northern Oil and Gas determined he was not entitled to a severance package and Reger sued the company days later. Weeks later, Reger and the SEC settled and Reger agreed to pay nearly $8 million, neither admitting nor denying the SEC’s findings.