Skadden secured the dismissal of a derivative lawsuit against XTO Energy by a trust beneficiary on behalf of a publicly traded royalty trust. The suit alleged that XTO had diverted trust assets by engaging in sham transactions with an affiliate. On September 17, Judge Terry Means of the U.S. District Court for the Northern District of Texas dismissed the case, holding that the beneficiary had failed to make a sufficient demand on the trustee before bringing the lawsuit.
Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates