Law Firms File Application for Attorneys' Fees
NEW YORK and DELAWARE — The law firms of Acocelli Law, PLLC, and Long Law, LLC (the "Firms") have announced their plans to file an application seeking an award of attorneys' fees and reimbursement of expenses in a significant lawsuit pending in the Delaware Court of Chancery. The case, known as Assad v. Hess Corporation, involves the plaintiff, George Assad, who claims benefits for stockholders in the defendant Hess Corporation as a result of ongoing litigation.
Details of the Lawsuit
The lawsuit centers around an Agreement and Plan of Merger that Hess entered into with Chevron Corporation. According to the terms of this agreement, Chevron would acquire all outstanding shares of Hess, marking a substantial shift for the company.
Allegations Against the Hess Board
In connection with this merger, Assad filed a complaint against Hess and its board of directors, alleging breaches of fiduciary duties under Delaware law. The complaint notably highlights the failure of the Hess Board to disclose important information about the merger, which Assad argues is vital for stockholder decision-making. Legal relief sought through this complaint includes an injunction against the merger along with claims for damages and fees.
Defendants' Stance
The defendants in the case have firmly denied any allegations of wrongdoing, asserting that they adhered to their fiduciary responsibilities throughout the merger process. Despite these denials, Hess opted to add disclosures to their Proxy Statement following the filing of the complaint, believing these would address concerns raised by Assad.
Approval of the Transaction
Following the introduction of these Supplemental Disclosures, a special meeting of Hess stockholders was held. During this meeting, stockholders approved the transaction, signaling a pivotal move in the merger process.
Transaction Completion and Legal Proceedings
On July 18, the merger was officially completed, establishing Hess as a wholly owned subsidiary of Chevron. The resolution of this dispute regarding the attorney's fees remains ongoing, with Chevron, as the successor in interest, engaged in discussions with Plaintiff's counsel regarding the application for attorney's fees.
Proposed Application for Fees
As the litigation progresses, plaintiff's counsel has chosen to escalate matters by formally filing the Fee and Expense Application with the Court, requesting that it resolve the Mootness Fee Claim, which remains unresolved. The requested amount is capped at $350,000, encompassing expenses incurred during the legal process. The defendants are expected to contest this application vigorously.
Court's Role in the Proceedings
Recently, the Court addressed the claims in the Action, dismissing them with prejudice concerning the original Plaintiff but allowing for the possibility of other stockholders to pursue claims. Importantly, the Court has maintained jurisdiction to adjudicate the Fee and Expense Application, requiring all written submissions to be completed by a specified date, after which a hearing will be scheduled.
Contact Information for Legal Counsel
For further inquiries, Plaintiff's counsel, Richard A. Acocelli, can be contacted at (631) 204-6187 or via email. Counsel for the defendants, Geoffrey R. Chepiga, is also available for communication at (212) 373-3000.
Frequently Asked Questions
What is the purpose of the Fee and Expense Application?
The Fee and Expense Application seeks an award of attorneys' fees and reimbursement of expenses related to the ongoing litigation regarding the merger.
Who are the parties involved in this lawsuit?
The suit involves the plaintiff George Assad against Hess Corporation and its Board of Directors.
What were the allegations made against the Hess Board?
The allegations included violations of fiduciary duties for failing to disclose material information related to the merger.
What is the current status of the merger?
The merger between Hess and Chevron has been completed, and Hess is now a wholly owned subsidiary of Chevron.
How much in fees are being sought in the application?
The application seeks no more than $350,000 in attorneys' fees and expenses.
