Black Elk Energy Hit With Derivative Suit Over Rig Accident

Law360, New York (January 10, 2013, 2:43 PM EST) -- Black Elk Energy LLC shareholders hit the oil and gas company with a derivative suit in Texas state court on Tuesday over purported company mismanagement, including alleged safety breaches on a company oil rig that caused the death of three employees.

Shareholder Thomas G. Andrus alleged that the board of directors' "long history of mismanagement," including 300 safety violations and an explosion on a company oil rig reduced a company unit's potential acquisition price and led Standard & Poor's Financial Services LLC to downgrade the company's...
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