Encore Faces Investor Class Action Over $567M Sale

Law360, New York (March 29, 2011, 10:21 PM EDT) -- Encore Energy Partners LP was hit Tuesday with a putative shareholder class action in Texas accusing the company of wresting control from public shareholders by agreeing to a $567 million buyout by Vanguard Natural Resources LLC.

In a complaint filed in the Harris County District Court in Texas, the shareholders said the deal undervalued the energy company at a time when oil prices were soaring.

"The proposed transaction undervalues the company and fails to compensate unitholders while other oil and gas companies are looking to expand,"...
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