Satschel, Inc. v. Gregory Wilson

CourtDistrict Court, D. South Dakota
DecidedNovember 5, 2025
Docket4:23-cv-04159
StatusUnknown

This text of Satschel, Inc. v. Gregory Wilson (Satschel, Inc. v. Gregory Wilson) is published on Counsel Stack Legal Research, covering District Court, D. South Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Satschel, Inc. v. Gregory Wilson, (D.S.D. 2025).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF SOUTH DAKOTA SOUTHERN DIVISION

SATSCHEL, INC., 4:23-CV-04159-CCT

Plaintiff,

ORDER DENYING DEFENDANT’S vs. MOTION FOR SUMMARY JUDGMENT GREGORY WILSON,

Defendant.

Defendant Gregory Wilson moves pursuant to Federal Rule of Civil Procedure 56 for summary judgment on all claims asserted by Plaintiff Satschel, Inc. Docket 82. Satschel opposes the motion. Docket 85. For the following reasons, the Court denies Wilson’s motion. BACKGROUND Much of the relevant background is set out in this Court’s October 2024 order denying Wilson’s motion to dismiss and motion for partial summary judgment. Docket 51. In summary, Satschel brought this suit against Wilson in October 2023, alleging fraud in the inducement and rescission and restitution in connection with the parties’ Purchase and Sale Agreement (Agreement) executed on January 12, 2023. Docket 3. In the alternative, Satschel alleges breach of contract and fraud and deceit. Id. Satschel also seeks punitive damages. Id. Wilson moved to dismiss Satschel’s complaint pursuant to Federal Rule of Civil Procedure 12(b)(1), alleging that “[n]o injury has yet to be sustained and a contingent liability is too abstract at this stage to support a cause of action.”

Dockets 16 and 17. He also filed a motion for partial summary judgment on Satschel’s claim that Wilson failed to disclose a Securities and Exchange Commission (SEC) examination concerning Wilson’s company, Variable Investment Advisors, Inc. (VIA). Docket 21; Docket 22 at 2. The Court denied the motion to dismiss, concluding that “Satschel’s suit is not based on a hypothetical or speculative disagreement; it concerns representations already made by Wilson prior to the parties executing the Agreement.” Docket 51 at 5. Also, “Satschel alleges a current, rather than

abstract, injury of at least $1,000,000, representing what it otherwise would not have paid Wilson had it known the true facts prior to executing the Agreement.” Id. As it relates to Wilson’s motion for partial summary judgment, the Court noted Satschel’s concession that Wilson disclosed the SEC examination prior to executing the Agreement. Id. at 7. Therefore, the Court granted Satschel’s request to strike that allegation from the complaint and denied Wilson’s motion for partial summary judgment. Id. Satschel’s remaining claims against Wilson are based in large part on

two allegations, namely that prior to the execution of the Agreement, Wilson failed to disclose and materially misrepresented VIA’s FINRA investigation and enforcement referral (hereinafter “FINRA investigation”) and (2) failed to disclose and materially misrepresented the true status of liquiditymaker.com. Docket 3 at 4–5; Docket 84 at 10; Docket 85 at 3. Wilson now moves for summary judgment on Satschel’s remaining claims. Docket 82. He contends that Satschel’s complaint should be dismissed in its entirety because Satschel

cannot prove damages as a matter of law even if this Court accepts Satschel’s allegations as true. Docket 84 at 18–26. He also asserts that Satschel’s fraud and deceit claims fail as a matter of law because it was on notice that VIA was not approved to conduct private placements and alternatively that Wilson did not have a duty to disclose the 2013 regulatory application for liquiditymaker.com. Id. at 25, 36–38; Docket 91 at 15–18. As it pertains to the breach of contract claim, Wilson argues that the undisputed material facts show he did not breach the Agreement. Docket 84 at 31–34. Wilson further

contends that Satschel’s request for the equitable remedy of recission is not available. Id. at 35–36. Finally, Wilson argues that Satschel’s claims are foreclosed by its default under the terms of the Agreement. Id. at 39. SUMMARY JUDGMENT STANDARD Summary judgment is appropriate “if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). “The moving party bears the burden of

showing both the absence of a genuine issue of material fact and its entitlement to judgment as a matter of law.” NDN Collective v. Retsel Corp., No. 5:22-CV-5027, 2024 WL 3903975, at *2 (D.S.D. Aug. 22, 2024) (citations omitted). “The moving party can meet this burden by presenting evidence that there is no dispute of material fact or by showing that the nonmoving party has not presented evidence sufficient to support an element of its case on which it bears the ultimate burden of proof.” Id. (citation omitted). “Once the movant has met its burden, the nonmoving party may not simply rest on the

allegations in the pleadings, but must present facts, by affidavit or other evidence, showing that a genuine issue of material fact exists.” S. Black Hills Water Sys., Inc. v. Town of Hermosa, No. 5:21-CV-05070-VLD, 2023 WL 4824956, at *4 (D.S.D. July 27, 2023) (citing Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 256 (1986); Fed. R. Civ. P. 56(e)). The Court will “review the evidence and the inferences which reasonably may be drawn from the evidence in the light most favorable to the nonmoving party.” Musolf v. J.C. Penney Co., Inc., 773 F.3d 916, 918 (8th Cir. 2014) (citation omitted).

DISCUSSION 1. Whether Satschel can prove it suffered damages.

Wilson contends that he is entitled to summary judgment on Satschel’s remaining claims because Satschel will be unable to prove damages.1 Docket 84 at 18. He offers multiple arguments in support, asserting first that Satschel was not damaged by the alleged misrepresentation regarding the status of liquiditymaker.com because Satschel had decided—before it learned of the alleged misrepresentation—to operate the ATS originally intended for VIA through another company Satschel purchased (ARQ Securities). Docket 91 at

1 Although Wilson cites South Dakota law on punitive damages, he does not make a specific argument that Satschel is not, as a matter of law, entitled to pursue its request for punitive damages. Therefore, the Court’s order does not address the propriety of Satschel’s request for punitive damages. 8–10; Docket 84 at 18–19. In essence, Wilson contends that even if he misrepresented the status of liquiditymaker.com, Satschel was not impacted by that decision when it entered into the Agreement because it ultimately chose to

use Satschel’s other company to operate the ATS. Docket 91 at 8–10. Wilson’s argument in this regard is based on a characterization of the evidence in a light most favorable to Wilson’s theory of the case. However, on summary judgment, the Court must view the evidence in a light most favorable to Satschel, the nonmoving party. Musolf, 773 F.3d at 918. In that light, the evidence in the record reveals that Satschel was searching for two broker dealers and two ATSs in 2022, and that it acquired ARQ Securities shortly before meeting Wilson in September 2022 to discuss the purchase of VIA.2 See

Docket 46-1 at 162–63; Docket 74-2 at 41–43; Docket 74-3 at 22–24.

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Satschel, Inc. v. Gregory Wilson, Counsel Stack Legal Research, https://law.counselstack.com/opinion/satschel-inc-v-gregory-wilson-sdd-2025.