SOURCE: Brower Piven, A Professional Corporation

November 10, 2010 19:03 ET

Brower Piven Announces Class Action Lawsuit in Connection With the Proposed Takeover Bid to Acquire All Outstanding Shares of EXCO Resources, Inc.

STEVENSON, MD--(Marketwire - November 10, 2010) - Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in Texas District Court, Dallas County on behalf of shareholders of EXCO Resources, Inc. ("EXCO" or the "Company") (NYSE: XCO). 

The Complaint alleges claims that arise out of defendants' attempts to consummate the sale of all outstanding shares of EXCO to Company Chairman and CEO Douglas H. Miller -- and possibly other insiders -- for inadequate consideration of $20.50 (''Takeover Bid"). According to the complaint, five of EXCO's ten directors -- defendants Miller, T. Boone Pickens, B. James Ford, Jeffrey S. Serota, and Robert L. Stillwell ("Conflicted Board Members") -- have decided that rather than continuing to represent the other EXCO shareholders, they are trying to buy the entire Company for themselves or their private equity companies.

The complaint alleges that each of the Conflicted Board Members has, and, if consummated, all defendants will have, directly violated and/or aided and abetted the other defendants' willful, reckless and wanton violations of the fiduciary duties owed to the public shareholders of EXCO and that absent judicial intervention, the Takeover Bid will be consummated, which will result in irreparable injury to plaintiff and the Class. The relief sought in the complaint includes a request to enjoin defendants' unlawful conduct and to force the Board to take the necessary steps to disclose all material information necessary to allow EXCO shareholders to make an informed voting decision on the Takeover Bid; to maximize shareholder value, and to consider all material information necessary to make an informed judgment about the sale of the Company, which the complaint alleges they have unlawfully failed to do thus far. Also according to the complaint, the Takeover Bid, as proposed, will deny class members their right to share proportionately and equitably in the true value of Company's valuable and profitable business and future growth at a time when the Company is poised to increase its profitability.

If you are a current owner of shares of EXCO Resources, Inc., you may obtain additional information about this lawsuit by contacting Brower Piven at www.browerpiven.com, by email at piven@browerpiven.com, by calling 410/415-6701, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 40 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Stevenson, Maryland
    410/415-6701
    Email Contact