San Diego, CA -- (SBWIRE) -- 02/13/2013 -- An investor in NYSE:SD shares filed a lawsuit against members of the board of directors of SandRidge Energy Inc. over alleged breaches of fiduciary duties and their alleged failure to protect against the misuse and misappropriation of the company's assets, and for the costs and expenses that have, and will be, paid by the company because of defendants' wrongdoing.
Investors who are current long term investors in SandRidge Energy Inc. (NYSE:SD) shares, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants acted unethical by allowing the Chairman of the board and CEO of SandRidge Energy Inc. to use company's assets, including its proprietary information and business strategy, to buy thorugh an investment vehicle mineral rights on land often adjoining or adjacent to company leases, thereby usurping company’s corporate opportunities by front-running the company.
The plaintiff claims that SandRidge Energy Inc. has leased 142,720 acres while the Chairman of the board and CEO’s investment vehicle has leased 257,920. Many of Chairman of the board and CEO’s investment vehicle's sections are directly contiguous to SandRidge Energy's sections, and some of the Chairman of the board and CEO’s investment vehicle's sections are completely surrounded by SandRidge Energy's sections.
Additionally, so the plaintiff, in past filings with the Securities and Exchange Commission, SandRidge Energy Inc. has disclosed that the Chairman of the board and CEO is a large ranchland owner in Kansas, and that SandRidge Energy Inc. has leased mineral rights from him.
The plaintiff says that it is astonishing that the chairman and CEO of a company would engage in behavior that directly competes with his shareholders' interests for his own personal benefit, and it is just as astonishing that the board would allow or even aid and abet him in doing so. It is well known to the board of SandRidge Energy Inc. that Chairman of the board and CEO and his son actively compete with the company's acquisition of mineral interests,so the plaintiff.
The plaintiff says the lawsuit is necessary since SandRidge Energy Inc is unable to protect itself or remedy the wrongs inflicted upon it.
On November 8, 2012, a large shareholder of SandRidge Energy Inc. issued a letter addressed to the SandRidge Board of Directors calling for the CEO’s resignation, citing, among other things, SandRidge's "disastrous performance" over 76% decline in its stock price since its initial public offering in 2007.
NYSE:SD shares declined to as low as $5.19 per share on November 14, 2012.
On February 12, 2013, NYSE:SD shares closed at $5.63 per share.
Those who purchased shares of SandRidge Energy Inc. (NYSE:SD) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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