Newman v. Moffett, et al.December 28, 2012
Newman Ferrara LLP Files Shareholder Derivative Action Against the Board of Directors of Freeport-McMoRan Copper & Gold Inc.
NEW YORK, December 28, 2012 (BUSINESS WIRE) – Newman Ferrara LLP announced today that it filed a shareholder derivative action in the Court of Chancery of the State of Delaware (Case No. 8156) against the of directors of Freeport-McMoRan Coppr & Gold Inc. ("Freeport") in connection with Freeport's proposed acquisitions of McMoRan Exploration Co. (“McMoRan”) and Plains Exploration & Production Co. (“Plains”).
On December 5, 2012, Freeport announced that it had entered into two definitive merger agreements to acquire McMoRan and Plains in transactions collectively valued at approximately $9 billion. Under the terms of each agreement, McMoRan shareholders will receive $14.75 in cash and 1.15 units of a royalty trust, which will hold a 5% royalty interest in future production from McMoRan’s existing ultra-deep exploration properties, per share of McMoRan stock owned. Plains shareholders will receive $25.00 in cash and 0.6531 shares of Freeport common stock, equivalent to $50.00 per share, based on Freeport’s December 4, 2012 closing price, per share of Plains stock owned.
Newman Ferrara's Complaint alleges that the defendants have caused Freeport to waste corporate assets and have engaged in self-dealing in breach of their fiduciary duties.
Newman Ferrara maintains a multifaceted practice based in New York City with attorneys specializing in complex commercial and multi-party litigation with an emphasis on securities, ERISA, shareholder litigation, consumer fraud, and real estate.
Attorney: Roy Shimon
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