Shareholder Class Action Says $390M Crimson Sale Too Low

Law360, Houston (July 22, 2013, 8:03 PM EDT) -- A Crimson Exploration Inc. shareholder launched a proposed class action in Texas state court Friday, alleging that a deal to sell the energy developer to Contango Oil & Gas Co. for $390 million significantly undervalues the company while lining board members' pockets.

Putative lead plaintiff Fisichella Family Trust says the merger, announced in April, is “marred by conflicts of interest” caused by Crimson’s largest shareholder, Oaktree Capital Management, which pushed the deal that guarantees it exclusive financial benefits.

“In sum, defendants failed to maximize shareholder value...
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