Roan Resources’ $1 Billion Private Equity Buyout Draws Suit (1)

A former Roan Resources Inc. shareholder sued its ex-directors in Delaware, claiming they engineered the energy company’s underpriced $1 billion sale from one private equity group to another in exchange for lucrative benefits not shared by public investors.

In addition to the former board, the Chancery Court lawsuit targets new Roan parent Citizen Energy, its backers at Warburg Pincus LLC, and its former control group: Roan Holdings, Elliott Management Corp., York Capital Management, and JVL Advisors, which is run by Roan’s majority owner, John Lovoi.

It accuses them of submitting the $1.52-a-share all-cash deal for a shareholder vote without disclosing ...