The shareholder class-action lawsuit filed in Harris County court alleges Pride's directors breached their fiduciary duty to shareholders by agreeing to a low share price and a restrictive merger contract that would preclude other offers.
On February 7, Houston-based deepwater drilling company Pride and British oil rig contractor Ensco jointly announced an agreement for Ensco to buy Pride for about $7 billion. The transaction is expected to close as early as the second quarter of 2011. The lawsuit asks the court to stop the merger to protect shareholders.
