Stockholder Sues Over Proposed Stone Energy, Talos Merger

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Stone Energy Corporation, its board of directors, Sailfish Energy Holdings Corporation, and Talos Energy LLC are facing a proposed class action that accuses the defendants of misleading stockholders regarding a proposed merger between Stone Energy and Talos. The suit takes issue with an allegedly incomplete registration statement filed in connection with the transaction that the plaintiff claims is missing information concerning the sales process behind the deal, Stone Energy’s financial projections, and the valuation analyses performed by its financial advisor.

The plaintiff says stockholders are entitled to more information about the other companies that expressed interest in acquiring Stone Energy, including whether they were precluded from proposing superior offers due to certain provisions in their confidentiality agreements. He demands that the defendants provide “a complete and accurate picture of the sales process and its fairness” before stockholders are required to vote on whether they support the transaction.