MIDLAND, Texas, June 25, 2018 /PRNewswire/ — Legacy Reserves LP (“Legacy”) (NASDAQ: LGCY) today announced that it has entered into a memorandum of understanding to settle the previously disclosed putative class action lawsuits in the Delaware Chancery Court captioned Doppelt v. Legacy Reserves LP, and Legacy Reserves GP, LLC, and Legacy Reserves Inc., Case No. 2018-0225 and Chammah Ventures, LLC v. Legacy Reserves LP, et al., C.A. No. 2018-0242-VCL, consolidated as In re Legacy Reserves LP Preferred Unitholder Litig., C.A. No. 2018-0225-VCL (the “Consolidated Class Action”). The settlement envisioned by the memorandum of understanding will also effectively resolve all claims in other previously disclosed lawsuits filed by purported holders of Legacy’s preferred units (together with the Consolidated Class Action, the “Actions”).
Legacy entered into the memorandum of understanding solely to avoid the costs, disruption, delay and distraction of further litigation, and without admitting the validity of any allegations made in the complaints in the Actions. Pursuant to the memorandum of understanding, Legacy, Legacy Reserves GP, LLC and Legacy Reserves Inc. (“New Legacy”) have agreed to amend the terms of the Transaction (as defined below) to provide that each outstanding 8% Series A Preferred Unit shall be converted into the right to receive 2.92033118 shares of common stock of New Legacy and each outstanding 8% Series B Preferred Unit shall be converted into the right to receive 2.90650421 shares of common stock of New Legacy (approximately 27.6 million total shares). The memorandum of understanding also provides, among other things, that the parties will negotiate in good faith to enter into a stipulation of settlement with respect to the Actions and that, upon the execution of a stipulation of settlement, the holders of preferred units will not seek additional relief or damages based on and release all claims related to the Transaction (as defined below). The stipulation of settlement, once executed by the parties thereto, will be subject to customary conditions, including final court approval of definitive settlement documentation.
About Legacy Reserves LP
Legacy Reserves LP is a master limited partnership headquartered in Midland, Texas, focused on the development of oil and natural gas properties primarily located in the Permian Basin, East Texas, Rocky Mountain and Mid-Continent regions of the United States. Additional information is available at www.LegacyLP.com.