A Louisiana pension fund has filed a lawsuit to stop Continental Resources Inc.'s acquisition of a company whose principal owner is CEO Harold Hamm.
The lawsuit filed by the Louisiana Municipal Police Employees' Retirement System accused Continental's board of breaching its fiduciary duty to the company's shareholders in agreeing to the $340 million deal to acquire Wheatland Oil Co. The suit, filed Tuesday in federal court in Oklahoma City, contends the purchase price is excessive.
Hamm owns 75 percent of Wheatland, with former Continental President Jeff Hume holding the remaining stake.
The suit contends the proposed deal is tainted by conflicts of interest because negotiations were led by board member Mark Monroe, who preceded Hamm and Hume as Continental's president.
Continental spokeswoman Kristin Miskovsky declined to comment on the lawsuit Wednesday, citing company policy for pending litigation.
“We believe that the allegations are without merit,” she said.