- Freeport McMoRan (NYSE:FCX) reportedly is nearing a settlement of more than $100M to resolve allegations its board and executives had conflicts of interest while negotiating the company’s purchase of McMoRan Exploration and Plains Exploration last year.
- The agreement would resolve a lawsuit filed by some FCX shareholders alleging the company overpaid when it bought the two affiliates for $9B.
- Ties between the three companies, including overlapping board members and ownership stakes, led to claims that FCX had used the veil of a strategic acquisition to bail out McMoRan; shareholders also alleged that to seal the deal, FCX also swallowed Plains, which had veto power over the McMoRan transaction.