Texas Pacific Holdout Investors Say Stock Decision Was Deceiving

Shareholders at Texas Pacific Land Corp. were misled about a board decision to issue new stock, investors who are being sued by the Permian Basin land giant testified Monday.

Two board members—Horizon Kinetics LLC CEO Murray Stahl and SoftVest Advisors LLC President Eric Oliver—opposed the move, but the proxy statement sent to shareholders before their annual meeting indicated the 10-member board reached the decision unanimously, both men said on the stand during trial in Delaware’s Chancery Court.

“I thought that was wrong,” Stahl said. “It was misleading shareholders. It was information they were entitled to know.”

Horizon is Texas Pacific’s ...