NEGI To Settle Derivative Suit Over Asset Sale For $9M

Law360, New York (June 1, 2010, 2:07 PM EDT) -- National Energy Group Inc. has agreed to fork out $9.15 million to settle a shareholder derivative action over the company's November 2006 sale of its noncontrolling 50 percent membership interest in NEG Holding LLC, paving the way for NEGI to proceed with its planned liquidation.

Defunct Dallas-based energy firm NEGI announced Friday that it had struck a deal to resolve the suit pending against it in the Delaware Chancery Court.

The company has agreed to pay its minority shareholders an additional $1.63 per share, making the...
To view the full article, register now.