Highland Capital Mgmt., L.P. et al v. Ryder Scott Co. shows how far a plaintiff will reach to find deep pockets to pay for a bad investment. Here, the plaintiffs went after the reservoir engineers who made reserve estimates and to a purchaser who acquired notes after the plaintiff acquired theirs. There was a question
In the Sale of Unregistered Securities, Knowledge of the Crime Does Not Matter
Finally, a criminal case those who raise money should consider. Hays v. State informs us of several basic rules to follow when selling oil and gas interests to strangers. They are simple but important:
Rule 1: If you tell your targets that you are raising the money to drill a well, you should go ahead