Houston American Beats Investor Suit Over Exec Bonuses

Law360, Houston (February 26, 2013, 10:06 PM EST) -- A Texas federal court on Tuesday tossed a shareholder derivative suit against executives and directors of Houston American Energy Corp., ruling their decision to pay themselves bonuses while business was bad was not sufficiently demonstrated to be against the company’s interest.

U.S. District Judge Gray H. Miller found that E. Howard King Jr. could not maintain his suit against the company unless he showed a majority of its directors had financial motives conflicting with shareholders’ interests and that the pay raises were an unreasonable business decision,...
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