Isramco Is Sued by Shareholder Claiming Mismanagement

Isramco Is Sued by Shareholder Claiming Mismanagement
Isramco Inc., which formerly explored for oil and gas in Israel and now develops wells in the U.S., was sued by a shareholder contending some officials including Chairman and Chief Executive Officer Haim Tsuff mismanaged the company.
In a lawsuit filed June 30 in Delaware Chancery Court, investor Yuval Lapiner contends Tsuff, company director Jackob Maimon and some other directors violated duties to shareholders, wasted corporate assets and should pay damages to the Houston-based company.
Isramco, which reported a $13.5 million net loss on $31.7 million in revenue last year, according to data compiled by Bloomberg, said in February 2008 that it paid $102 million to buy rights to 590 wells in Texas, Oklahoma and New Mexico.
The lawsuit includes allegations that valuable assets of Isramco were transferred to entities controlled by Tsuff and Maimon “at bargain-basement prices.”
Tsuff and Edy Francis, Isramco’s chief financial officer, didn’t return voice and e-mail messages seeking comment on the lawsuit.
The case is Lapiner v. Tsuff and Isramco Inc., CA5612, Delaware Chancery Court (Wilmington).
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