Independent directors of Nabors Industries successfully defend shareholder derivative action
Clients Payne, James L. and Knaster, Alexander M.
Jones Day represented James L. Payne and Alexander M. Knaster, two independent directors of Nabors Industries, Inc., in a derivative action filed in the United States District Court for the Southern District of Texas, alleging that present and former directors of Nabors engaged in the backdating of stock option grants from 1991 to 2006. The amended complaint alleged violations of sections 14(a) and 10(b) of the Securities Exchange Act, and SEC Rule 10b-5, and alleged breach of fiduciary duty, abuse of control, fraud, mismanagement, waste, and unjust enrichment, and sought rescission of the option grants and an accounting. The matter was settled prior to any discovery and with no contribution by any individual defendant.
Karstedt v. Eugene M. Isenberg et al., No. 4:07-CV-00509 (S.D. Tex.)