EEX investor suit filed against them - anyone have info ?
EEX is led by Tom Hamilton who some say is the #1 man in the Oil Business. Company has some very promising deepwater GOM leases, but has been criticized for its deal in a joint venture with Enterprise oil in developing these fields.
My questions is - will this become dead money like MIND and others who have been sued ?
Comments ? I'm out on the news...
NEW YORK, Aug 3 (Reuters) - A class action lawsuit was
filed on Monday in a U.S. District Court on behalf of certain
shareholders of EEX Corp <EEX.N>, formerly Enserch Exploration
Inc, and Texas Utilities Co <TXU.N>, charging the companies
with making false statements concerning their merger last
August.
The suit, filed in the Northern District of Texas, alleges
that between January 26, 1996 and August 4, 1997 inclusive, the
two Dallas-based energy services companies issued "materially
false and misleading statements by overstating the assets of
Enserch's energy exploration subsidiary, EEX, and the unit's
proved natural gas and oil reserves in East Texas and the Gulf
of Mexico.
The complaint also charges that the companies and certain
officers misrepresented the value of EEX shares distributed to
Enserch shareholders as part of the merger, which involved the
spinning off of Enserch's 83 percent stake in EEX to Enserch
shareholders immediately prior to the merger's completion.
The shareholders are represented by the law firm of Milberg
Weiss Bershad Hynes & Lerach LLP, with offices in New York, San
Diego, Los Angeles and San Francisco.
Neither company could immediately be reached for comment.
REUTERS
Rtr 17:56 08-03-98 |
