Gas producer, Empire Oil & Gas
(ASX:EGO), has settled a court case with some of its former directors.
They allegedly used the company’s funds to pursue defamation proceedings against certain Empire shareholders.
Empire has not revealed what the settlement amount was, but says its decision to settle was on commercial terms having regard to the high costs of litigation, and its desire to focus on the business.
Earlier this month, Empire reported a two-thirds fall in its interim profit – dropping from $1.2 million last year to $384,000 this year. The company says this was due to reduced demand from its client, Alcoa, which is the third largest producer of aluminium in the world.
This morning, Empire shares are trading steady at 21.5 cents.
