Rigrodsky & Long, P.A. announces a complaint alleging breaches of fiduciary duty and other violations of law has been filed in the United States District Court for the Southern District of Texas against the board of directors of Eagle Rock Energy Partners, L.P. (“Eagle Rock” or the “Company”) (NASDAQ GS: EROC) in connection with the Company’s entry into an agreement to sell its midstream business to Regency Energy Partners LP (“Regency”) (NYSE: RGP), in a transaction valued at approximately $1.3 billion.
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Under the terms of the agreement, Regency is exchanging $550 million of Eagle Rock debt (in the form of outstanding senior unsecured notes) for an equivalent amount of Regency senior unsecured notes. Eagle Rock will also receive $200 million of newly-issued common units and approximately $520 million in cash from Regency.
The complaint alleges that Eagle Rock’s board of directors failed to adequately shop the Company and obtain the best possible value for Eagle Rock’s unitholders before entering into an agreement with Regency.If you own the common stock of Eagle Rock and purchased your shares before December 23, 2013, and would like to learn more about these allegations, please contact Seth D. Rigrodsky or Gina M. Serra at Rigrodsky & Long, P.A., 2 Righter Parkway, Suite 120, Wilmington, Delaware 19803, by telephone at (888) 969-4242; by e-mail to email@example.com, or at: http://www.rigrodskylong.com/investigations/eagle-rock-energy-partners-l-p-eroc. Rigrodsky & Long, P.A., with offices in Wilmington, Delaware and Garden City, New York, regularly prosecutes securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, on behalf of shareholders in states and federal courts throughout the United States. Attorney advertising. Prior results do not guarantee a similar outcome.