» South Texas Jury Awards Dallas Oil and Gas Company $162 Million Verdict

South Texas Jury Awards Dallas Oil and Gas Company $162 Million Verdict

In a lawsuit claiming that two directors breached their fiduciary duties to wrongfully obtain hundreds of millions of dollars, a Dallas oil company has been awarded a jury verdict of $162 million.

The firm, Longview Energy Company, claimed that two directors had abused their authority in obtaining information about company resources and opportunities in the Eagle Ford Shale.  According to the lawsuit, the two received hundreds of millions of dollars from fraud and misuse of proprietary information.

The Eagle Ford Shale spans under more than 24 Texas counties and produces oil and natural gas, as well as natural gas liquids.

The case moved along at a quick pace, with just nine months passing between the lawsuit being filed and the jury handing down a verdict.

Delaware law became an issue in the case, as Longview Energy is incorporated there, and the defendants claimed that the laws of that state allowed them to offset money they had spent to obtain and develop the assets against the amount of the jury award.

The jury found that the two directors, Bill D’Angelo and William Huff, used their positions as directors to obtain proprietary information about opportunities in the Eagle Ford Shale, and then set up the Riley-Huff Energy Group to exploit those resources for their own benefit, thus breaching their fiduciary duty to Longview Energy.

Gregory D. Jordan is an Austin oil and gas attorney, Texas oil and gas litigation lawyer and Austin business attorney.  To learn more, visit http://www.theaustintriallawyer.com.

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