AZA prevailed for a client with $115 million at stake in an energy sector lawsuit filed by more than 100 oil and gas producers.
SemCrude, a major midstream oil and gas company, filed for bankruptcy in 2008 without paying the oil and gas producers who sold to SemCrude in the preceding months. When those producers could not get full recovery from the bankruptcy estate, they filed suit against the downstream pipeline companies who purchased gas from SemCrude, including AZA client Plains Marketing, L.P.
AZA participated in over 225 depositions in the case. Plains did settle with one producer because their oil was proven to be held by Plains. Before the key February 2013 summary judgment hearing, AZA convinced many producers to abandon their claims against Plains, saving Plains over $30 million. After the hearing, other producers “settled” with Plains which paid absolutely no money to those producers, saving Plains more than $70 million more.