Unocal Corporation (formerly NYSE:UCL)

As co-lead counsel in this securities class action, Robbins Arroyo LLP represented the public shareholders of Unocal against the company and several of its insiders, officers, and directors for self-dealing and breach of fiduciary duty in connection with the proposed sale of Unocal to Chevron Corp. The independent oil and gas exploration and production company had become the subject of a bidding war between Chevron and the Chinese National Offshore Oil Corporation. Plaintiffs alleged that Unocal’s management failed to obtain the highest share price reasonably available by tailoring the structural terms of the proposed acquisition to meet the specific needs of Chevron and by discouraging alternative bids to purchase control of the company or its assets.

After obtaining broad expedited discovery to ensure Unocal shareholders were getting the best share price available, the firm was credited for $500 million in additional consideration paid to Unocal shareholders as part of an increased bid of $17.4 billion by Chevron Corp. In addition, as part of the settlement, the firm secured supplemental proxy statement disclosures before Unocal shareholders voted whether to accept Chevron’s bid over a nominally higher bid by the Chinese National Offshore Oil Corporation.

Lieb v. Unocal Corp., No. BC331316 (Cal. Super. Ct.-Los Angeles County Dec. 20, 2005).

 

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