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Shareholder’s Post-Liquidation Gains in Energy Derivatives

Accumyn’s expert calculated post-liquidation gains realized by certain officers/shareholders from hedging oil and gas production with collar and swap energy derivative instruments after induced liquidations of shareholder convertibles and redeemable preferred stock of non-officer/shareholders. The alleged failure to disclose the subsequent gains resulted in an alleged breach of fiduciary duty claim in a multi-million dollar shareholder dispute. Accumyn thoroughly examined market premiums and Black-Sholes option models, taking into consideration exposure to price and volume risk. Accumyn also compared post liquidation gains using collar and swap derivates versus long put options.