Devon Energy’s announced merger with Tulsa-based WPX Energy has run into legal challenges filed by several WPX stockholders who are trying to stop the pending merger.
In a filing with the Securities and Exchange Commission this week, Devon Energy laid out the opposition explaining a dozen complaints have been filed including seven in the U.S. District Court for the Southern District of New York, three in the U.S. District Court for the District of Delaware, one in the U.S. District Court for the Eastern District of New York and one in the Supreme Court of the State of New York.
All of the complaints were filed by WPX stockholders and name WPX and members of the company’s Board as defendants. But some complaints also name Devon Energy as a defendant.
The SEC filing showed the stockholder actions make claims of breach of fiduciary duty or alleged violations of the Securities Exchange Act. They also accused WPX and Devon of failing to disclose information about their financial projects, the sales process, the financial analyses of their financial advisors and compensation and material relationships of advisors and WPX’s confidentiality agreements.
“Although the Company cannot predict the outcome of or estimate the possible loss or range of loss from these matters, Devon and the Devon Board believe that the respective claims asserted against them in the Stockholder Actions are meritless and intend to vigorously defend them,” stated Devon Energy in the SEC filing.
As part of the Devon filing with the SEC, the company also filed a Joint Proxy Statement/Prospectus which it said should eliminate the burden and expense of litigation.
Click here to view Devon’s proxy filing with SEC
