Israeli Oilman Will Pay $6.5 Million to End Isramco Buyout Case

Haim Tsuff, the businessman who took Isramco Inc. private through a $96.5 million merger with another of his affiliates, Naphtha Israel Petroleum Corp., will pay $6.5 million to settle a shareholder case challenging the transaction.

The settlement would resolve litigation facing Tsuff in Delaware’s Chancery Court. Because the case is a class action, the agreement needs the approval of Vice Chancellor Sam Glasscock III, who’s required to ensure that it’s fair to outside parties such as investors not participating in the court fight.

The deal comes about 18 months after the judge let the lawsuit advance against Tsuff, controlling stockholder ...