Cabot Oil Board Beats Shareholder Pollution Claims on Appeal (2)

Cabot Oil & Gas Corp.‘s board overcame allegations that they failed to properly oversee gas well fixes and forced the company to mislead investors about complying with environmental laws, a federal appeals court ruled Tuesday.

The US Circuit Court of Appeals for the Fifth Circuit affirmed a district court ruling to toss the shareholder derivative lawsuit, agreeing with the lower court that the plaintiffs didn’t sufficiently establish that demanding changes from the board before suing would’ve been in vain, which is required under Delaware law where Cabot is incorporated. Circuit Judge James E. Graves Jr. wrote for the panel ...