Investors Unable to Convince Court Fracking Deal Was Unlawful

Former US Well Services Inc. investors, who alleged the entity’s $270 million sale to another fracking company constituted an illegal breach, had their lawsuit dismissed Friday.

The investors couldn’t sufficiently allege that Crestview Partners LP controlled USWS’s board of directors, either generally or specifically in connection with the 2022 merger with ProFrac Holding Corp., according to a memorandum opinion in Delaware’s Court of Chancery. Vice Chancellor Bonnie W. David also ruled that the investors failed to allege a majority of USWS’s nine-member board lacked independence over the merger.

"[T]he amended complaint fails to adequately allege that the director defendants acted ...