Important Update: The Court granted final approval to the Settlement on December 15, 2023. Copies of the Court's Order and other relevant pleadings are available on the Important Documents page.

What is this lawsuit about?

The Litigation seeks damages for Foundation’s alleged failure to pay statutory interest on allegedly late payments under Oklahoma law (Class I) and damages for Corterra’s alleged failure to pay statutory interest on allegedly late payments under Oklahoma law (Class II). Defendants and Corterra expressly deny all allegations of wrongdoing or liability with respect to the claims and allegations in the Litigation. The Court has made no determination with respect to the merits of any of the parties’ claims or defenses.

Who is included?

The Settlement Classes in the Litigation consist of the following individuals and entities:

Class I
All non‑excluded persons or entities who, within the Claim Period: (1) received late payments under the PRSA from Foundation Energy Management, LLC (or Foundation Energy Management, LLC’s designee) for oil‑and‑gas proceeds from Oklahoma wells or whose proceeds were sent as unclaimed property to a government entity by Foundation Energy Management, LLC; and (2) whose proceeds did not include the statutory interest required by the PRSA.

Class II
All non‑excluded persons or entities who, within the Claim Period: (1) received late payments under the PRSA from Corterra Energy Operating, LLC (or Corterra Energy Operating, LLC’s designee) for oil‑and‑gas proceeds from the Oklahoma wells that were acquired by Foundation Energy Fund VII‑A, L.P., or whose proceeds from those acquired wells were sent as unclaimed property to a government entity by Corterra Energy Operating, LLC; and (2) whose proceeds did not include the statutory interest required by the PRSA.

The Claim Period means checks or payments made or issued by or on behalf of Defendants or Corterra at any time prior to and including September 12, 2022, subject to the terms of the Settlement Agreement regarding Released Claims. A list of the persons or entities excluded from the Class can be found in the Notice of Proposed Settlement, which is available for download from the Important Documents page.

What does the Settlement provide?

In settlement of all claims alleged in the Litigation, Defendants have agreed to pay Two Million Six Hundred Fifty Thousand Dollars ($2,650,000.00) in cash and Corterra has agreed to pay One Hundred Thousand Dollars ($100,000) (“Gross Settlement Fund”). In exchange for this payment and other consideration outlined in the Settlement Agreement, the Settlement Classes shall release the Released Claims (as defined in the Settlement Agreement) against the Released Parties (as defined in the Settlement Agreement). The Gross Settlement Fund, less Plaintiff’s Attorneys’ Fees, Litigation Expenses and Administration, Notice, and Distribution Costs, Case Contribution Award, and any other costs approved by the Court (the “Net Settlement Fund”), will be distributed to final Class Members pursuant to the terms of the Settlement Agreement. The Settlement Agreement also includes Future Benefits.

The Class Representative and Plaintiff’s Counsel believe that the Settlement is in the best interest of the Classes, and, therefore, they intend to support the proposed Settlement at the Final Fairness Hearing.