Erin Energy Corp (NYSEMKT:ERN) Investor Filed Lawsuit Against CEO Over Alleged Wrongdoing

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Company Name(s): 
Erin Energy
Case Name: 
Erin Energy Shareholder Derivative Lawsuit 02/11/2016
Case Status: 
Lawsuit Filed
Affected Securities
NYSEMKT: ERN
Lawsuit Overview
Type of Lawsuit: 
Shareholder Derivative Action
Date Filed: 
02/11/2016
Summary: 

February 17, 2016 (Shareholders Foundation) - A current investor in shares of Erin Energy Corp (NYSEMKT:ERN) filed a lawsuit against the CEO and certain directors of Erin Energy in connection with oil leases in Africa.

The plaintiff claims that the CEO of Erin Energy Corp strong-armed Erin Energy Corp to overpay by almost $200 million for oil leases off the coast of Nigeria in an area called the Oyo Field in a $416 million deal that benefited Allied Energy Plc, another company controlled him. The plaintiff also claims that certain directors failed to protect the negotiations from the CEO’s undue influence and then sent out the transaction proxy which misleadingly portrays the deal process as pristine.

Erin Energy Corp reported that its annual Total Revenue declined from $74.67 million in 2012 to $53.84 million in 2014 and that its Net Loss increased from $32.71 million in 2012 to $96.06 million in 2014. Shares of Erin Energy Corp (NYSEMKT:ERN) increased from $4.81 per share on May 11, 2015 to as high as $8.76 per share on June 2, 2015.

On June 8, 2015, NYSEMKT:ERN shares declined to $5.51 per share.