January 14, 2014 (Shareholders Foundation) - An investor who currently hold NYSE:SN shares filed a lawsuit against certain directors of Sanchez Energy Corp. over alleged breaches of fiduciary duties.
The plaintiff alleges that the board of directors of Sanchez Energy Corp. is stacked with childhood friends, business associates and other loyalists beholden to the Sanchez family and that Sanchez Energy Corp. is a shell company that is directly affiliated with Sanchez Oil & Gas Corporation founded by A.R. Sanchez, Sr. and his son A.R. Sanchez, Jr.

The plaintiff claims that A.R. Sanchez, Sr. and his son A.R. Sanchez, Jr. have since created the affiliate companies, that are run by Sanchez family members and family friends, for the purpose of acquiring land for oil development and managing investments.

The plaintiff claims that Sanchez Oil & Gas Corporation searching for a way to develop 80,000 acres of its holdings took Sanchez Energy public in December 2011, raising $203 million and that the intent was allegedly to cash out Altpoint Capital Partners' interest in Sanchez Resources, which owns a 50 percent stake in the land and had refused to invest more money in the company, causing Sanchez Resources to seek another way to fund further development.

The plaintiff says that because the Sanchez family was unwilling to fund the development of the acreages themselves they decided to force Sanchez Energy's public stockholders to do so.

Sanchez Energy Corp reported that its annual Total Revenue rose from $14.52 million in 2011 to $43.16 million in 2012, while its Net Income of $1.97 million in 2011 turned into a Net Loss of $16.30 per share in 2012.

Sanchez Energy Corp (NYSE:SN) closed on January 14, 2014 at $25.05 per share.