STEVENSON, Md., May 14, 2014 (GLOBE NEWSWIRE) -- The securities litigation law firm of Brower Piven, A Professional Corporation, announces that a class action lawsuit has been commenced in the New York Supreme Court, New York County, on behalf of all common stockholders of Forest Oil Corporation ("Forest Oil" or the "Company") (NYSE:FST) asserting claims that the members of the Company's board of directors have breached fiduciary duties they owe to Forest Oil shareholders.
The complaint alleges unlawful actions in connection with a proposed transaction between the Company and Sabine Oil & Gas LLC ("Sabine") ("Proposed Transaction"). The suit claims the Company's board of directors breached their fiduciary duties by failing to maximize shareholder value in connection with the Proposed Transaction.
Defendants have allegedly exacerbated their breaches of fiduciary duty by agreeing to lock up the Proposed Transaction with deal protection devices that preclude other bidders from making a successful competing offer for the Company. Specifically, the complaint alleges defendants agreed to: (i) a no-solicitation provision that prevents other buyers from having access to the Company's confidential information, which is necessary to formulate a bid, except under extremely limited circumstances; (ii) a matching rights provision that allows Sabine 3 days to match any competing proposal in the event one is made; and (iii) a provision that requires the Company to pay Sabine a termination fee of up to $15,000,000. According to the complaint, these provisions substantially limit the Board of Director's ability to act with respect to investigating and pursing superior proposals and alternatives including a sale of all or part of Forest Oil.
If you currently own common stock of Forest Oil and would like to learn more about this lawsuit and your ability to participate as a plaintiff, without cost or obligation to you, click here: http://www.browerpiven.com/currentinvestigations.html.
You may also request more information by contacting Brower Piven either by email at email@example.com or by telephone at (410) 415-6616. Attorneys at Brower Piven together have more than a century of experience litigating securities and other class action cases.
CONTACT: Charles J. Piven Brower Piven, A Professional Corporation 1925 Old Valley Road Stevenson, Maryland 21153 Telephone: 410-415-6616 firstname.lastname@example.orgSource: Brower Piven, A Professional Corporation