Hess facing three lawsuits over disclosures in Chevron deal

By Thomson Reuters May 21, 2024 | 8:46 AM

(Reuters) – Oil producer Hess on Tuesday said it is currently facing three lawsuits alleging inadequate disclosures over its proposed sale to Chevron.

Chevron last October offered to acquire Hess in a move to gain a foothold in oil-rich Guyana’s lucrative offshore fields. However, the deal has been stalled due to a conflict with Exxon Mobil and pending regulatory approval by the Federal Trade Commission.

All three lawsuits seek to further delay or block the $53 billion deal. Hess shareholders are scheduled to vote on May 28 on the deal.

The allegations regarding deficiency in disclosures “are without merit”, the company said in a securities filing on Tuesday, but added that it was voluntarily supplementing the proxy statement “to moot plaintiffs’ disclosure claims and to avoid nuisance, potential expense and delay”.

In addition to these lawsuits, several purported stockholders of Hess have sent demand letters alleging similar deficiencies.

(Reporting by Mrinalika Roy in Bengaluru; Editing by Vijay Kishore)