Miller Energy Resources Announces Dismissal Of Shareholder Derivative Lawsuit In Federal Court
Miller Energy Resources (“Miller”) (NYSE: MILL) announced today the
dismissal of two consolidated shareholder derivative lawsuits against
the Company and certain of the Company’s current and former officers...
Miller Energy Resources (“Miller”) (NYSE: MILL) announced today the dismissal of two consolidated shareholder derivative lawsuits against the Company and certain of the Company’s current and former officers and directors. Filed on August 25, 2011, and August 31, 2011, in the United States District Court for the Eastern District of Tennessee, the lawsuits alleged, among other things, the dissemination of misleading information, mismanagement and waste of corporate assets. On September 21, 2012, the trial court granted the Company’s motion to dismiss these suits. The Court found, among other things, that the plaintiff failed to make a demand on the Company’s Board of Directors to investigate and, if necessary, remediate the plaintiff’s allegations prior to filing the lawsuit. The opinion further held that the plaintiff had failed to show why the requirement that such a demand be made should be excused in these cases. “We are pleased with the positive outcome,” said Scott M. Boruff, Miller Energy Resources CEO. “We have maintained throughout this litigation that the cases were without merit, and this dismissal reflects that in their rush to file, the plaintiffs did not carefully consider the facts or follow the proper procedure in bringing their claims. It is so gratifying that the Court granted our motion to dismiss, as it allows us to direct more of our time and attention to the primary mission of the company. As always, we are committed to providing long-term value to our shareholders through our continued growth and development.” About Miller Energy Resources Miller Energy Resources, Inc. is a high growth oil and natural gas exploration, production and drilling company operating in multiple exploration and production basins in North America. Miller’s focus is in Cook Inlet, Alaska and in the heart of Tennessee's prolific and hydrocarbon-rich Appalachian Basin including the Chattanooga Shale. Miller is headquartered in Knoxville, Tennessee with offices in Anchorage, Alaska and Huntsville, Tennessee. The company’s common stock is listed on the NYSE under the symbol MILL.
In trading on Tuesday, shares of Miller Energy Resources, Inc.'s 10.5% Series D Fixed Rate/Floating Rate Cumulative Redeemable Preferred Stock were yielding above the 17% mark based on its quarterly dividend (annualized to $2.625), with shares changing hands as low as $15.25 on the day. This compares to an average yield of 15.24% in the "Oil & Gas Exploration & Production" preferred stock category, according to Preferred Stock Channel.
The most recent short interest data was recently released by the NASDAQ for the 11/28/2014 settlement date, and Miller Energy Resources, Inc. is one of the most shorted stocks of the Russell 3000, based on 16.60 "days to cover" versus the median component at 6.85.