A law firm noted that a securities class action lawsuit was filed against an oil company after it agreed to a pending merger with another organization.
Law office Brower Piven explained that the litigation was filed in the New York Supreme Court for New York County against Forest Oil Corporation after it agreed to be purchased by Sabine Oil and Gas, LLC.
The allegations in the lawsuit include the Forest Oil board of directors breaching fiduciary duties when coming to terms with Sabine Oil and Gas because the pending deal may not be in the best interests of shareholders. Further allegations included Forest Oil's decision to make a no-solicitation agreement that eliminated the chances for other companies who wanted to purchase Forest Oil from examining confidential information. This is typically crucial when trying to bid on a company. Sabine Oil and Gas also had the ability to match any proposal within three days, and Forest Oil also agreed to pay a termination fee that would be as much as $15 million.
Those individuals who have interests in the company and want to discuss matters related to becoming lead plaintiff in the case may want to speak with the law firm to learn how they can best achieve this.
It is an option for shareholders to speak with the law firm to learn more about how the action may affect them, as well as other related issues. The best person to speak with is Charles Piven, and he can be reached by telephone or email. Additionally, the law office's website provides more details on the case.
Separate investigation underway
Another litigation firm recently noted that it was looking into matters related to the pending deal, and how it may affect shareholders. There is a possibility that this will become a class action lawsuit down the line.
Law firm Brodsky and Smith, LLC, started the investigation of Forest Oil for many of the aforementioned reasons. The pending deal would provide shareholders with just 0.1 shares of Sabine Oil and Gas stock for each share of Forest Oil owned.
It is possible to speak with the law office to receive more information about the case. The best people to contact are Jason Brodsky and Evan Smith, and they can be reached by mail, email or telephone.