Edgen Group Inc., a distributor of oilfield pipes and valves, sued to block a shareholder lawsuit filed in Louisiana over the company’s agreement to be acquired by Sumitomo Corp. of America.
Shareholder Jason Genoud should be barred from prosecuting claims in Louisiana state court because he consented to exclusive jurisdiction in Delaware when he acquired an interest in shares of the company, Edgen said in a complaint filed yesterday in Delaware Chancery Court.
Edgen, based in Baton Rouge, Louisiana, said Oct. 1 that it agreed to be bought by Sumitomo for $12 a share in cash. The deal, which is expected to be completed by the end of the year, has a termination fee of $20 million.
Genoud, an Alberta, Canada, resident, filed a proposed class-action lawsuit on behalf of other Edgen shareholders on Oct. 11 alleging company directors breached their fiduciary duty by agreeing to an inadequate sale price. Edgen has asked the court to dismiss that case, according to a company filing.
The Louisiana case is Genoud v. Edgen Group Inc., 625244, Nineteenth Judicial District Court, East Baton Rouge Parish. The Delaware case is Edgen Group Inc. v Genoud, CA9055, Delaware Chancery Court (Wilmington).