WHITE PLAINS, N.Y. (Legal Newsline) – A stockholder is seeking to enjoin a vote on a proposed merger between an independent oil and natural gas company based in Texas and other petroleum and natural gas company.
Stephen Bushansky, on behalf of himself of all others similarly situated, filed a complaint on Jan. 14 in the U.S. District Court for the Southern District of New York against WildHorse Resource Development Corp., et al. over alleged violation of the Securities Exchange Act of 1934.
According to the complaint, on Dec. 26, 2018, WildHorse filed a definitive proxy statement with the Securities and Exchange Commission after entering into an agreement and plan of merger with Chesapeake Energy through its wholly owned subsidiary Coleburn Inc. The suit states the merger is valued at $3.9 billion.
The plaintiff alleges the statement, which recommends that WildHorse stockholders vote in favor of the transaction, omits or misrepresents information such as financial projections and potential conflicts of interest.
The plaintiff alleges that WildHorse stockholders will be "forced" to make a voting decision without full disclosure of all the information concerning the transaction unless the alleged issue is remedied.
The plaintiff requests a trial by jury and seeks a preliminary and permanent injunction, award of costs and grant such other and further relief as the court may deem just and proper. He is represented by Richard A. Acocelli of Weisslaw LLP in New York.
U.S. District Court for the Southern District of New York case number 1:19-cv-00381-UA