Atlas Energy Solutions Reorganization Hit With Legal Challenge

Atlas Energy Solutions Inc.'s founder and members of its board shortchanged public stockholders when they reorganized it from an Up-C into a traditional corporation, a lawsuit unsealed Wednesday says.

An investor is suing Texas oil tycoon Ben “Bud” Brigham and several other directors, challenging their decision last year to restructure Atlas, which makes fluids used in fracking. The move transferred valuable tax benefits to corporate insiders including Brigham, the company’s controlling stockholder, without compensating the minority shareholders who gave them up, according to the complaint filed in Delaware Chancery Court.

Although the board established a special committee to review the ...