What changed in this filing

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Item 1. Legal Proceedings

2021-11-09 compared with 2021-08-09 · 31 added, 60 removed, 19 unchanged (83% of the section changed)

1 unchanged sentence

Litigation and Claims

Sal Gilbertie, et al.

Dale Riker and Barbara Riker:

On November 30, 2020, certain Company officers and members, along with the Sponsor, filed a Verified Complaint in the Delaware Court of Chancery, C.A.

2020-1018-AGB, asserting various claims against Dale Riker, the Sponsor’s former Chief Executive Officer and Barbara Riker, the Sponsor’s former Chief Financial Officer and Chief Compliance Officer.

Among other things, the Action responded to and addressed certain allegations that Mr.

Riker had made in a draft complaint that he threatened to file (and subsequently did file) in New York Supreme Court (see below discussion of that New York action).

Through this Action, as amended through an Amended Verified Complaint filed on February 18, 2021, the plaintiffs assert claims for a declaration concerning the effects of the final order and judgment in an earlier books and records action;

On November 30, 2020, certain officers and members of Teucrium Trading, LLC (the “Sponsor”), along with the Sponsor, filed a Verified Complaint (as amended through the Amended Verified Complaint filed on February 18, 2021) (the “Gilbertie complaint”) in the Delaware Court of Chancery, C.A.

2020-1018-AGB.

The Gilbertie complaint asserts various claims against Dale Riker, the Sponsor’s former Chief Executive Officer and Barbara Riker, the Sponsor’s former Chief Financial Officer and Chief Compliance Officer.

Sal Gilbertie v.

Dale Riker , et al., C.A.

2020-1018-AGB (Del.

Ch.) (the “Gilbertie case”)

Among other things, the Gilbertie complaint responded to and addressed certain allegations that Mr.

Riker had made in a draft complaint that he threatened to file (and subsequently did file) in New York Supreme Court.

See Dale Riker v.

Sal Gilbertie, et al., No.

656794-2020 (N.Y.

On April 22, 2021, the Supreme Court of the State of New York, New York County dismissed Mr.

Riker’s case without prejudice to the case being refiled after the conclusion of the Gilbertie c ase in Delaware Chancery Court.

See Dale Riker, et al.

Teucrium Trading, LLC et al, Decision + Order on Motions, No.

6567943-2020 (N.Y.

The Gilbertie complaint asserts claims for a declaration concerning the effects of the final order and judgment in an earlier books and records action;

for a declaration concerning Mr.

1 unchanged sentence

Gilbertie had entered into an agreement to purchase Mr.

Riker’s equity in the Company;

Riker’s equity in the Sponsor;

for an order compelling the return of property from Mr.

10 unchanged sentences

and for breach of fiduciary duty by Mr.

Dale Riker vs.

Sal Gilbertie, et al.:

On November 24, 2020, Mr.

Riker, through counsel, threatened to file an action in New York Supreme Court against Mr.

Gilbertie, Ms.

Mullen-Rusin, Mr.

Kahler, and Mr.

Miller, providing a copy of the draft complaint that he threatened to file.

On December 7, 2020, Mr.

Riker filed a version of his threatened complaint in the New York Supreme Court, New York County, Index No.

656794/2020, asserting both direct claims on his own behalf and derivative claims on behalf of the Sponsor (the “Riker v.

Gilbertie Action”).

Through the Riker v.

Gilbertie Action, Mr.

Riker asserted derivative claims for breach of fiduciary duty against Mr.

Gilbertie, Mr.

Mullen-Rusin, and Mr.

a direct claim for defamation against Messrs.

Miller and Gilbertie;

a direct claim against Messrs.

Miller and Gilbertie seeking a declaration concerning the validity of actions taken by Company Class A members;

a direct claim for breach of the implied covenant of good faith and fair dealing against Messrs.

Miller and Gilbertie;

a direct claim against Mr.

Gilbertie seeking specific performance of an alleged agreement for Mr.

Gilbertie to purchase Mr.

Riker’s equity in the Sponsor;

a derivative claim against Mr.

Gilbertie, Mr.

Kahler, and Ms.

Mullen-Rusin for unjust enrichment;

and a direct claim against Mr.

Gilbertie, Mr.

Miller, and Ms.

Mullen-Rusin for an equitable accounting.

The complaint did not seek any damages against the Sponsor.

With respect to this case, on April 22, 2021, the Supreme Court of the State of New York, New York County dismissed the case without prejudice to the case being refiled after the conclusion of the Gilbertie case in Delaware Chancery Court as discussed above.

On June 29, 2021, Mr.

Riker, individually and derivatively on behalf of the Sponsor, filed a new action in the Court of Chancery of the State of Delaware against the Sponsor’s officers and certain of the Sponsor’s Class A Members.

Through this Delaware action, Mr.

Riker asserts the same claims above with the exception of the removal of the direct claim for defamation against Messrs.

Miller and Gilbertie, the addition of a direct claim for breach of the Operating Agreement against Messrs.

Miller and Gilbertie, the removal of the claim against Mr.

Gilbertie, Mr.

Miller, and Ms.

Mullen-Rusin for an equitable accounting, and the addition of a derivative claim of unjust enrichment against Mr.

Gilbertie, Mr.

Kahler and Ms.

Mullen-Rusin.

The complaint seeks repayment of legal fees to the Sponsor related to the Gilbertie v.

The Sponsor intends to pursue its claims and defend vigorously against Mr.

Riker’s claims in Delaware.

On June 29, 2021, Dale Riker, individually and derivatively on behalf of the Sponsor, filed a new suit in the Court of Chancery of the State of Delaware against the Sponsor’s officers and certain of the Sponsor’s Class A Members.

See Dale Riker v.

Salvatore Gilbertie et al.

2021-0561-LWW.

(the “ Riker c ase”).

On September 7, 2021, Dale Riker and Barbara Riker filed their answers to the Gilbertie complaint.

As a result of the Court having ordered the consolidation of the Gilbertie c ase and Riker c ase, the claims in the Riker c ase were re-filed as counterclaims in the Gilbertie c ase, which accompanied the Rikers’ answers.

The now-consolidated Gilbertie c ase and the Riker c ase is captioned Sal Gilbertie, Cory Mullen-Rusin, Steve Kahler, Carl Miller III, and Teucrium Trading LLC v.

Dale Riker and Barbara Riker , C.A.

2020-1018-LWW.

Through their counterclaims, the Rikers assert direct and derivative claims for breach of fiduciary duty, breach of contract, declaratory relief, specific performance, unjust enrichment, fraud, and conspiracy to commit fraud.

The Sponsor intends to pursue its claims and defend vigorously against the Rikers’ counterclaims in Delaware.

Except as described above, within the past 10 years of the date of this prospectus, there have been no material administrative, civil or criminal actions against the Sponsor, the Trust or the Fund, or any principal or affiliate of any of them.

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Legal Proceedings