Reger v. Associated Press, The

U.S. District Court, District of Minnesota

Reger v. Associated Press, The

Trial Court Opinion

             UNITED STATES DISTRICT COURT                            
                 DISTRICT OF MINNESOTA                               
              CIVIL NO.: 23-2983(DSD/DLM)                            

Michael Reger,                                                            

Plaintiff,                                                           

v.                                              ORDER                     

The Associated Press,                                                     

Defendant.                                                           


This matter is before the court upon the motion to dismiss by        
defendant The Associated Press (AP).  Based on a review of the            
file,  record,  and  proceedings  herein,  and  for  the  following       
reasons, the motion is granted in part and denied in part.                

                      BACKGROUND                                     
This defamation case arises from an article published by the         
AP on June 16, 2022, regarding plaintiff Michael Reger.  Reger was        
one of the founders and principals of Dakota Plains Holdings, Inc.,       
an oil and gas company.  Compl. ¶¶ 5-6; Compl. Ex. B, at 5.  In           
2016, a group of Dakota Plains shareholders filed a civil lawsuit         
in  New  York  against  Reger  and  ten  others,  alleging  securities    
fraud, control person liability, and insider trading.  Id. ¶¶ 6-          
7.  The other defendants settled and Reger proceeded to trial.            
Id. ¶ 8.                                                                  
On June 14, 2022, the jury returned a verdict finding Reger          
civilly liable for securities fraud and as a control person for           
Dakota Plains.  Id. ¶ 9.  Reger was found not liable for insider          
trading.  Id.                                                             

On June 16, 2022, the Minneapolis Star Tribune published an          
article accurately explaining the Dakota Plains civil lawsuit and         
verdict.  Id. ¶¶ 10-18; id. Ex. B.  Later the same day, the AP            
published a short article regarding the lawsuit and verdict.  Id.         
¶ 20.  Unlike the Star Tribune article, and despite citing to the         
accurate Star Tribune article, the AP article contained several           
errors.  Reger alleges that these errors wrongfully stated and            
implied that he was convicted of criminal activity rather than            
held civilly liable, thus causing substantial harm to his personal        
and business reputations.                                                 
Reger cites to the following factual errors in the AP article        
in his complaint:                                                         
  •                                                                  
     “Former Minnesota oil executive convicted of securities         
     fraud.”                                                         

  •                                                                  
     Reger  “has  been  convicted  in  a  stock  manipulation        
     scheme.”                                                        

  •                                                                  
     “A federal jury in New York on Tuesday found Michael            
     Reger  guilty  of  securities  fraud,  wrapping  up   a         
     shareholder lawsuit filed five years ago[.]”                    

  •                                                                  
     “Reger was acquitted of insider trading.”                       

Id. Ex. C, at 1 (emphases added).                                         

                           2                                         
In addition to the inaccurate words regarding the nature of          
the lawsuit and verdict, Reger alleges that the article implied           
that he was found criminally liable.  He specifically notes that          

the article discussed the fact that his Dakota Plains co-founder,         
Ryan Gilbertson, was convicted and sentenced to twelve years in           
prison for wire fraud, securities fraud, and conspiracy to commit         
securities fraud.  Id.  The article also stated that Gilbertson           
“agreed to testify against Reger.”  Id.  Reger further cites to           
the last sentence in the article, which stated that “[a] third            
defendant in the case, Douglas Hoskins, was sentenced in 2018 for         
two years in prison for his role in the scheme.”  Id.                     
According  to  Reger,  these  statements  -  and  the  article’s     
inclusion of hyperlinks to other articles addressing Reger’s civil        
co-defendants’  criminal  convictions  -  bolstered  the  impression      
already  created  by  the  above-noted  factual  inaccuracies  that       

Reger, too, was criminally liable and subject to imprisonment.            
Compl. ¶¶ 32, 36-37.                                                      
Reger alleges that the AP article has caused him significant         
and ongoing harm and has lowered his estimation in the community.         
For example, he claims that his insurer canceled his homeowner’s          
policy “specifically because the insurance company had seen AP’s          
article and its false report of [his] alleged conviction of a             
felony during the policy period.”  Id. ¶ 46.  He also claims more         

                           3                                         
generally that he has been removed from board positions, denied           
the  opportunity  to  open  investment  trading  accounts,  and  lost     
significant business opportunities.  Id. ¶¶ 45, 47, 52.  He notes         

that the AP article was republished by other news outlets, which          
further spread the disinformation contained in the AP article,            
thereby exacerbating his harm.  Id. ¶¶ 54-56; see id. Ex. D.              
On September 26, 2023, Reger commenced this action against           
the AP alleging defamation, defamation by implication, defamation         
per se, and intentional infliction of emotional distress (IIED).          
He seeks damages in excess of $50,000,000.  After Reger filed the         
lawsuit, the AP published a corrected version of the article.  The        
AP now moves to dismiss.1                                                 






1  The AP invites the court to take judicial notice of nearly        
four dozen media stories regarding Reger’s businesses and related         
regulatory and legal proceedings.  See ECF No. 19.  It also asks          
the  court  to  take  into  consideration  certain  filings  with  the    
Securities and Exchange Commission and various legal documents in         
matters unrelated to this case.  See ECF Nos. 20, 22.  The various        
documents provided by the AP will not be considered at this time          
given the limited nature of the instant motion.  The court will           
instead focus on whether Reger has raised cognizable claims based         
on the allegations in the complaint and the documents attached to         
the complaint, consistent with Rule 12(b)(6) of the Federal Rules         
of Civil Procedure.                                                       

                           4                                         
                      DISCUSSION                                     
I.   Standard of Review                                                   
To survive a motion to dismiss for failure to state a claim,         

“‘a complaint must contain sufficient factual matter, accepted as         
true, to state a claim to relief that is plausible on its face.’”         
Braden v. Wal-Mart Stores, Inc., 
588 F.3d 585, 594
 (8th Cir. 2009)        
(quoting Ashcroft v. Iqbal, 
556 U.S. 662, 678
 (2009)).  “A claim          
has facial plausibility when the plaintiff [has pleaded] factual          
content that allows the court to draw the reasonable inference            
that the defendant is liable for the misconduct alleged.”  Iqbal,         
556 U.S. at 678
 (citing Bell Atl. Corp. v. Twombly, 
550 U.S. 544, 556
  (2007)).    Although  a  complaint  need  not  contain  detailed     
factual allegations, it must raise a right to relief above the            
speculative  level.    Twombly,  
550 U.S. at 555
.    “[L]abels  and    
conclusions or a formulaic recitation of the elements of a cause          

of action” are not sufficient to state a claim.  Iqbal, 
556 U.S. at 678
 (citation and internal quotation marks omitted).                   
II.  Defamation                                                           
Reger alleges that the statements that he was “convicted” and        
found  “guilty”  of  securities  fraud  and  “acquitted”  of  insider     
trader constitute defamation.                                             
To prevail under Minnesota law on claim of defamation, Reger         
must prove that defendant (1) published a statement of fact; (2)          

                           5                                         
of and concerning him; (3) which was false; and (4) damaged his           
reputation and lowered their estimation in community.  Lewis v.           
Equitable  Life  Assurance  Soc’y,  
389 N.W.2d 876, 886
  (Minn.        

1986); Foley v. WCCO Television, Inc., 
449 N.W.2d 497, 500
 (Minn.         
Ct. App. 1989).  The AP does not dispute that Reger has alleged           
the above elements of defamation.                                         
The AP contends, however, that because Reger is a “limited-          
purpose public figure,” he must also plausibly allege that the            
defamatory statements were made with “actual malice.”  Stepnes v.         
Ritschel, 
771 F. Supp. 2d 1019, 1043-44
 (D. Minn. 2011).  Limited-        
purpose public figures are people who “have thrust themselves to          
the forefront of particular controversies in order to influence           
the resolution of the issues involved.”  Gertz v. Robert Welch,           
Inc., 
418 U.S. 323, 345
 (1974); see also Jadwin v. Minneapolis            
Star & Trib. Co., 
367 N.W.2d 476, 480-81
 (Minn. 1985).  Reger             

denies being a limited-purpose public figure and argues that the          
issue should not be decided on a motion to dismiss in any event.          
The court agrees with Reger that it is premature to consider         
whether  he   is  a  limited-purpose   public  figure,  as  that          
determination  requires  further  factual  development.    See  Woods     
Servs. Inc. v. Disability Advocs., Inc., No. 18-cv-296, 
2018 WL 2134016
, at * (E.D. Pa. May 9, 2018) (“The question of whether            
Plaintiff is a limited-purpose public figure is a question of fact        

                           6                                         
— “difficult and fact-specific” — not suitable for resolution under       
Rule 12(b)(6).”); see also Brodkorb v. Minnesota, No. 12-cv-1958,         
2013 WL 588231
, at *10 n.6 (D. Minn. Feb. 13, 2013) (assuming, for        

purposes of a motion to dismiss, that the plaintiff is a “private         
figure for whom the ‘actual malice’ standard is not applicable”).         
The court further notes that even if it were appropriate to          
determine on the present record that Reger is a limited-purpose           
public  figure,  the  complaint  plausibly  alleges  actual  malice.      
Actual malice in this context is defined as a statement made “with        
knowledge that it was false or with reckless disregard of whether         
it was false or not.”  New York Times Co. v. Sullivan, 
376 U.S. 254, 280
 (1964).  “To show ‘reckless disregard,’ a plaintiff must         
prove  the  defendant  made  the  statement  ‘while  subjectively         
believing that the statement [was] probably false.’”  Stepnes, 
771 F. Supp. 2d at 1047
 (quoting Chafoulias v. Peterson, 
668 N.W.2d 642, 655
 (Minn. 2003)).                                                   
Reger alleges that the AP acted with malice by making false          
statements about him that were readily contradicted by the Star           
Tribune article directly cited in the AP article.  See Compl. 65-         
66.    This  meets  the  reckless  disregard  standard  for  pleading     
purposes.  The court is unpersuaded by the AP’s argument that Reger       
has at most pleaded that AP made a mistake, which cannot serve as         
the basis for actual malice.  First, the cases the AP relies on           

                           7                                         
were decided on summary judgment on a full record rather than             
motions to dismiss.  See Blankenship v. NBCUniversal, LLC, 
60 F.4th 744
 (4th Cir. 2023); Kipper v. NYP Holdings Co., Inc., 
912 N.E.2d 26
 (N.Y. 2009); Klayman v. City Pages, 650 Fed. App’x 744 (11th           
Cir. 2016).  Second, the court cannot simply take the AP at its           
word that the errors were innocent mistakes.  Although that may           
prove to be the case, it is a question for another day.                   
The AP also argues that the defamation claim fails as a matter       
of law because Reger has not adequately pleaded that the statements       
were materially false.  Under Minnesota law, if a “statement is           
true  in  substance,  inaccuracies  of  expression  or  detail  are       
immaterial.”    Jadwin,  390  N.W.2d  at  441.    “A  statement  is       
substantially accurate if its gist or sting is true, that is, if          
it produces the same effect on the mind of the recipient which the        
precise truth would have produced.”  Id. (citation omitted).              

The  AP  contends  that  when  read  as  a  whole,  the  article     
accurately  conveys  that  Reger  was  found  civilly  rather  than       
criminally  liable,  thereby  showing  that  the  errors  were  not       
materially false.  What effect the errors may have had on readers         
is not a question the court can resolve on a motion to dismiss,           
however.  See Lewis, 
389 N.W.2d at 889
 (“[T]he truth or falsity of        
a statement is inherently within the province of the jury.”).             
III.  Defamation by Implication                                           

                           8                                         
Reger also alleges that the AP article impliedly defamed him         
by including statements and hyperlinks to other articles regarding        
the separate criminal proceedings against his co-defendants in the        

civil case.  He asserts that this information falsely implied that        
he was also charged criminally with and found guilty of securities        
fraud.                                                                    
“[D]efamation by implication is ‘the juxtaposition of facts          
so as to imply a defamatory connection between them,’ and another         
form is ‘the omission of facts.’”  Mudrich v. Wal-Mart Stores,            
Inc., 
955 F. Supp. 2d 1001, 1028
 (D. Minn. 2013) (quoting Michaelis       
v. CBS, Inc., 
119 F.3d 697, 700
 (8th Cir. 1997)).   “In an implied        
defamation case, a defendant does not avoid liability by simply           
establishing the truth of the individual statement.  Instead, the         
defendant must also defend the juxtaposition of the two statements        
or the omission of certain facts.”  
Id.
 (quoting Michaelis, 
119 F.3d at 700
).                                                             
The  AP  challenges  the  adequacy  of  the  implied  defamation     
claim, arguing that Reger failed to allege that the AP intended           
the implication.  But the complaint alleges otherwise, see Compl.         
¶¶ 72-83, even going so far as to allege bad faith, id. ¶ 84.  As         
a  result,  the  facts  alleged  are  sufficient  to  allow  Reger  to    
proceed    on     the    theory     of    implied     defamation.         
IV.  Defamation Per Se                                                    

                           9                                         
Reger next alleges that the AP is liable for defamation per          
se because the article falsely accuses him of committing the crime        
of securities fraud.                                                      

A plaintiff claiming defamation typically must establish harm        
to  reputation;  emotional-harm   damages  are  insufficient  in          
themselves to make the matter actionable.  Krogh v. Sweeney, 
195 F. Supp. 3d 1049, 1055
 (D. Minn. 2016).  In cases of defamation           
per se, however, harm to reputation may be presumed.  Id.; see            
also Richie v. Paramount Pictures Corp., 
544 N.W.2d 21, 25
 (Minn.         
1996);  Chafoulias,  
668 N.W.2d at 654
.    “Statements  considered     
defamatory per se include false accusations of committing a crime         
and  false  statements  about  a  person’s  business,  trade,  or         
professional conduct.”  Tholen v. Assist Am., Inc., 
528 F. Supp. 3d 1017
,  1024  (D.  Minn.  2021).    Reger  has  adequately  pleaded    
defamation per se based on the errors and factual implications in         

the article.                                                              
V.  Intentional Infliction of Emotional Distress                          
Reger lastly alleges that the AP is liable for IIED because          
the  article’s  falsehoods  and  implications  constituted  extreme,      
intentional, and outrageous misconduct.  The AP moves to dismiss          
this  claim,  arguing  that  Reger  cannot  avoid  the  burdens  of  a    
defamation  claim  by  raising  essentially  the  same  claim  under      
another doctrine.  It also argues that Reger has failed to meet           

                          10                                         
the high bar required to properly plead an IIED claim.  Reger did         
not respond to the AP’s arguments and therefore has abandoned this        
claim.  See Christensen v. PennyMac Loan Servs., LLC, 
988 F. Supp. 2d 1036, 1042
 (D. Minn. 2013) (holding that the failure to respond        
to  a  dispositive  argument  on  a  motion  to  dismiss  constitutes     
abandonment of the underlying claim).  The IIED claim is dismissed        
with prejudice.                                                           

                      CONCLUSION                                     
Accordingly, based on above, IT IS HEREBY ORDERED that the           
motion to dismiss [ECF No. 15] is granted in part and denied in           
part as set forth above.                                                  


Dated: April 17, 2024         s/David S. Doty                             
                         David S. Doty, Judge                        
                         United States District Court                








                          11                                         

Trial Court Opinion

             UNITED STATES DISTRICT COURT                            
                 DISTRICT OF MINNESOTA                               
              CIVIL NO.: 23-2983(DSD/DLM)                            

Michael Reger,                                                            

Plaintiff,                                                           

v.                                              ORDER                     

The Associated Press,                                                     

Defendant.                                                           


This matter is before the court upon the motion to dismiss by        
defendant The Associated Press (AP).  Based on a review of the            
file,  record,  and  proceedings  herein,  and  for  the  following       
reasons, the motion is granted in part and denied in part.                

                      BACKGROUND                                     
This defamation case arises from an article published by the         
AP on June 16, 2022, regarding plaintiff Michael Reger.  Reger was        
one of the founders and principals of Dakota Plains Holdings, Inc.,       
an oil and gas company.  Compl. ¶¶ 5-6; Compl. Ex. B, at 5.  In           
2016, a group of Dakota Plains shareholders filed a civil lawsuit         
in  New  York  against  Reger  and  ten  others,  alleging  securities    
fraud, control person liability, and insider trading.  Id. ¶¶ 6-          
7.  The other defendants settled and Reger proceeded to trial.            
Id. ¶ 8.                                                                  
On June 14, 2022, the jury returned a verdict finding Reger          
civilly liable for securities fraud and as a control person for           
Dakota Plains.  Id. ¶ 9.  Reger was found not liable for insider          
trading.  Id.                                                             

On June 16, 2022, the Minneapolis Star Tribune published an          
article accurately explaining the Dakota Plains civil lawsuit and         
verdict.  Id. ¶¶ 10-18; id. Ex. B.  Later the same day, the AP            
published a short article regarding the lawsuit and verdict.  Id.         
¶ 20.  Unlike the Star Tribune article, and despite citing to the         
accurate Star Tribune article, the AP article contained several           
errors.  Reger alleges that these errors wrongfully stated and            
implied that he was convicted of criminal activity rather than            
held civilly liable, thus causing substantial harm to his personal        
and business reputations.                                                 
Reger cites to the following factual errors in the AP article        
in his complaint:                                                         
  •                                                                  
     “Former Minnesota oil executive convicted of securities         
     fraud.”                                                         

  •                                                                  
     Reger  “has  been  convicted  in  a  stock  manipulation        
     scheme.”                                                        

  •                                                                  
     “A federal jury in New York on Tuesday found Michael            
     Reger  guilty  of  securities  fraud,  wrapping  up   a         
     shareholder lawsuit filed five years ago[.]”                    

  •                                                                  
     “Reger was acquitted of insider trading.”                       

Id. Ex. C, at 1 (emphases added).                                         

                           2                                         
In addition to the inaccurate words regarding the nature of          
the lawsuit and verdict, Reger alleges that the article implied           
that he was found criminally liable.  He specifically notes that          

the article discussed the fact that his Dakota Plains co-founder,         
Ryan Gilbertson, was convicted and sentenced to twelve years in           
prison for wire fraud, securities fraud, and conspiracy to commit         
securities fraud.  Id.  The article also stated that Gilbertson           
“agreed to testify against Reger.”  Id.  Reger further cites to           
the last sentence in the article, which stated that “[a] third            
defendant in the case, Douglas Hoskins, was sentenced in 2018 for         
two years in prison for his role in the scheme.”  Id.                     
According  to  Reger,  these  statements  -  and  the  article’s     
inclusion of hyperlinks to other articles addressing Reger’s civil        
co-defendants’  criminal  convictions  -  bolstered  the  impression      
already  created  by  the  above-noted  factual  inaccuracies  that       

Reger, too, was criminally liable and subject to imprisonment.            
Compl. ¶¶ 32, 36-37.                                                      
Reger alleges that the AP article has caused him significant         
and ongoing harm and has lowered his estimation in the community.         
For example, he claims that his insurer canceled his homeowner’s          
policy “specifically because the insurance company had seen AP’s          
article and its false report of [his] alleged conviction of a             
felony during the policy period.”  Id. ¶ 46.  He also claims more         

                           3                                         
generally that he has been removed from board positions, denied           
the  opportunity  to  open  investment  trading  accounts,  and  lost     
significant business opportunities.  Id. ¶¶ 45, 47, 52.  He notes         

that the AP article was republished by other news outlets, which          
further spread the disinformation contained in the AP article,            
thereby exacerbating his harm.  Id. ¶¶ 54-56; see id. Ex. D.              
On September 26, 2023, Reger commenced this action against           
the AP alleging defamation, defamation by implication, defamation         
per se, and intentional infliction of emotional distress (IIED).          
He seeks damages in excess of $50,000,000.  After Reger filed the         
lawsuit, the AP published a corrected version of the article.  The        
AP now moves to dismiss.1                                                 






1  The AP invites the court to take judicial notice of nearly        
four dozen media stories regarding Reger’s businesses and related         
regulatory and legal proceedings.  See ECF No. 19.  It also asks          
the  court  to  take  into  consideration  certain  filings  with  the    
Securities and Exchange Commission and various legal documents in         
matters unrelated to this case.  See ECF Nos. 20, 22.  The various        
documents provided by the AP will not be considered at this time          
given the limited nature of the instant motion.  The court will           
instead focus on whether Reger has raised cognizable claims based         
on the allegations in the complaint and the documents attached to         
the complaint, consistent with Rule 12(b)(6) of the Federal Rules         
of Civil Procedure.                                                       

                           4                                         
                      DISCUSSION                                     
I.   Standard of Review                                                   
To survive a motion to dismiss for failure to state a claim,         

“‘a complaint must contain sufficient factual matter, accepted as         
true, to state a claim to relief that is plausible on its face.’”         
Braden v. Wal-Mart Stores, Inc., 
588 F.3d 585, 594
 (8th Cir. 2009)        
(quoting Ashcroft v. Iqbal, 
556 U.S. 662, 678
 (2009)).  “A claim          
has facial plausibility when the plaintiff [has pleaded] factual          
content that allows the court to draw the reasonable inference            
that the defendant is liable for the misconduct alleged.”  Iqbal,         
556 U.S. at 678
 (citing Bell Atl. Corp. v. Twombly, 
550 U.S. 544, 556
  (2007)).    Although  a  complaint  need  not  contain  detailed     
factual allegations, it must raise a right to relief above the            
speculative  level.    Twombly,  
550 U.S. at 555
.    “[L]abels  and    
conclusions or a formulaic recitation of the elements of a cause          

of action” are not sufficient to state a claim.  Iqbal, 
556 U.S. at 678
 (citation and internal quotation marks omitted).                   
II.  Defamation                                                           
Reger alleges that the statements that he was “convicted” and        
found  “guilty”  of  securities  fraud  and  “acquitted”  of  insider     
trader constitute defamation.                                             
To prevail under Minnesota law on claim of defamation, Reger         
must prove that defendant (1) published a statement of fact; (2)          

                           5                                         
of and concerning him; (3) which was false; and (4) damaged his           
reputation and lowered their estimation in community.  Lewis v.           
Equitable  Life  Assurance  Soc’y,  
389 N.W.2d 876, 886
  (Minn.        

1986); Foley v. WCCO Television, Inc., 
449 N.W.2d 497, 500
 (Minn.         
Ct. App. 1989).  The AP does not dispute that Reger has alleged           
the above elements of defamation.                                         
The AP contends, however, that because Reger is a “limited-          
purpose public figure,” he must also plausibly allege that the            
defamatory statements were made with “actual malice.”  Stepnes v.         
Ritschel, 
771 F. Supp. 2d 1019, 1043-44
 (D. Minn. 2011).  Limited-        
purpose public figures are people who “have thrust themselves to          
the forefront of particular controversies in order to influence           
the resolution of the issues involved.”  Gertz v. Robert Welch,           
Inc., 
418 U.S. 323, 345
 (1974); see also Jadwin v. Minneapolis            
Star & Trib. Co., 
367 N.W.2d 476, 480-81
 (Minn. 1985).  Reger             

denies being a limited-purpose public figure and argues that the          
issue should not be decided on a motion to dismiss in any event.          
The court agrees with Reger that it is premature to consider         
whether  he   is  a  limited-purpose   public  figure,  as  that          
determination  requires  further  factual  development.    See  Woods     
Servs. Inc. v. Disability Advocs., Inc., No. 18-cv-296, 
2018 WL 2134016
, at * (E.D. Pa. May 9, 2018) (“The question of whether            
Plaintiff is a limited-purpose public figure is a question of fact        

                           6                                         
— “difficult and fact-specific” — not suitable for resolution under       
Rule 12(b)(6).”); see also Brodkorb v. Minnesota, No. 12-cv-1958,         
2013 WL 588231
, at *10 n.6 (D. Minn. Feb. 13, 2013) (assuming, for        

purposes of a motion to dismiss, that the plaintiff is a “private         
figure for whom the ‘actual malice’ standard is not applicable”).         
The court further notes that even if it were appropriate to          
determine on the present record that Reger is a limited-purpose           
public  figure,  the  complaint  plausibly  alleges  actual  malice.      
Actual malice in this context is defined as a statement made “with        
knowledge that it was false or with reckless disregard of whether         
it was false or not.”  New York Times Co. v. Sullivan, 
376 U.S. 254, 280
 (1964).  “To show ‘reckless disregard,’ a plaintiff must         
prove  the  defendant  made  the  statement  ‘while  subjectively         
believing that the statement [was] probably false.’”  Stepnes, 
771 F. Supp. 2d at 1047
 (quoting Chafoulias v. Peterson, 
668 N.W.2d 642, 655
 (Minn. 2003)).                                                   
Reger alleges that the AP acted with malice by making false          
statements about him that were readily contradicted by the Star           
Tribune article directly cited in the AP article.  See Compl. 65-         
66.    This  meets  the  reckless  disregard  standard  for  pleading     
purposes.  The court is unpersuaded by the AP’s argument that Reger       
has at most pleaded that AP made a mistake, which cannot serve as         
the basis for actual malice.  First, the cases the AP relies on           

                           7                                         
were decided on summary judgment on a full record rather than             
motions to dismiss.  See Blankenship v. NBCUniversal, LLC, 
60 F.4th 744
 (4th Cir. 2023); Kipper v. NYP Holdings Co., Inc., 
912 N.E.2d 26
 (N.Y. 2009); Klayman v. City Pages, 650 Fed. App’x 744 (11th           
Cir. 2016).  Second, the court cannot simply take the AP at its           
word that the errors were innocent mistakes.  Although that may           
prove to be the case, it is a question for another day.                   
The AP also argues that the defamation claim fails as a matter       
of law because Reger has not adequately pleaded that the statements       
were materially false.  Under Minnesota law, if a “statement is           
true  in  substance,  inaccuracies  of  expression  or  detail  are       
immaterial.”    Jadwin,  390  N.W.2d  at  441.    “A  statement  is       
substantially accurate if its gist or sting is true, that is, if          
it produces the same effect on the mind of the recipient which the        
precise truth would have produced.”  Id. (citation omitted).              

The  AP  contends  that  when  read  as  a  whole,  the  article     
accurately  conveys  that  Reger  was  found  civilly  rather  than       
criminally  liable,  thereby  showing  that  the  errors  were  not       
materially false.  What effect the errors may have had on readers         
is not a question the court can resolve on a motion to dismiss,           
however.  See Lewis, 
389 N.W.2d at 889
 (“[T]he truth or falsity of        
a statement is inherently within the province of the jury.”).             
III.  Defamation by Implication                                           

                           8                                         
Reger also alleges that the AP article impliedly defamed him         
by including statements and hyperlinks to other articles regarding        
the separate criminal proceedings against his co-defendants in the        

civil case.  He asserts that this information falsely implied that        
he was also charged criminally with and found guilty of securities        
fraud.                                                                    
“[D]efamation by implication is ‘the juxtaposition of facts          
so as to imply a defamatory connection between them,’ and another         
form is ‘the omission of facts.’”  Mudrich v. Wal-Mart Stores,            
Inc., 
955 F. Supp. 2d 1001, 1028
 (D. Minn. 2013) (quoting Michaelis       
v. CBS, Inc., 
119 F.3d 697, 700
 (8th Cir. 1997)).   “In an implied        
defamation case, a defendant does not avoid liability by simply           
establishing the truth of the individual statement.  Instead, the         
defendant must also defend the juxtaposition of the two statements        
or the omission of certain facts.”  
Id.
 (quoting Michaelis, 
119 F.3d at 700
).                                                             
The  AP  challenges  the  adequacy  of  the  implied  defamation     
claim, arguing that Reger failed to allege that the AP intended           
the implication.  But the complaint alleges otherwise, see Compl.         
¶¶ 72-83, even going so far as to allege bad faith, id. ¶ 84.  As         
a  result,  the  facts  alleged  are  sufficient  to  allow  Reger  to    
proceed    on     the    theory     of    implied     defamation.         
IV.  Defamation Per Se                                                    

                           9                                         
Reger next alleges that the AP is liable for defamation per          
se because the article falsely accuses him of committing the crime        
of securities fraud.                                                      

A plaintiff claiming defamation typically must establish harm        
to  reputation;  emotional-harm   damages  are  insufficient  in          
themselves to make the matter actionable.  Krogh v. Sweeney, 
195 F. Supp. 3d 1049, 1055
 (D. Minn. 2016).  In cases of defamation           
per se, however, harm to reputation may be presumed.  Id.; see            
also Richie v. Paramount Pictures Corp., 
544 N.W.2d 21, 25
 (Minn.         
1996);  Chafoulias,  
668 N.W.2d at 654
.    “Statements  considered     
defamatory per se include false accusations of committing a crime         
and  false  statements  about  a  person’s  business,  trade,  or         
professional conduct.”  Tholen v. Assist Am., Inc., 
528 F. Supp. 3d 1017
,  1024  (D.  Minn.  2021).    Reger  has  adequately  pleaded    
defamation per se based on the errors and factual implications in         

the article.                                                              
V.  Intentional Infliction of Emotional Distress                          
Reger lastly alleges that the AP is liable for IIED because          
the  article’s  falsehoods  and  implications  constituted  extreme,      
intentional, and outrageous misconduct.  The AP moves to dismiss          
this  claim,  arguing  that  Reger  cannot  avoid  the  burdens  of  a    
defamation  claim  by  raising  essentially  the  same  claim  under      
another doctrine.  It also argues that Reger has failed to meet           

                          10                                         
the high bar required to properly plead an IIED claim.  Reger did         
not respond to the AP’s arguments and therefore has abandoned this        
claim.  See Christensen v. PennyMac Loan Servs., LLC, 
988 F. Supp. 2d 1036, 1042
 (D. Minn. 2013) (holding that the failure to respond        
to  a  dispositive  argument  on  a  motion  to  dismiss  constitutes     
abandonment of the underlying claim).  The IIED claim is dismissed        
with prejudice.                                                           

                      CONCLUSION                                     
Accordingly, based on above, IT IS HEREBY ORDERED that the           
motion to dismiss [ECF No. 15] is granted in part and denied in           
part as set forth above.                                                  


Dated: April 17, 2024         s/David S. Doty                             
                         David S. Doty, Judge                        
                         United States District Court                








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Reference

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