Cheniere Energy Inc CEO Charif Souki spoke at the IHS CERAWeek 2015 energy conference in Houston, Texas on April 22, 2015. HOUSTON, Jan 20 Reuters - A California investor sued Tellurian Inc Chairman Charif Souki on Thursday, accusing him of fraud in relation to an agreement over Tellurian stock.
Shareholder Chris Parker filed a breach of contract lawsuit with the U.S. District Court in Denver, seeking unspecified damages from Souki, founder of the U.S. liquefied natural gas company. Parker, a Los Angeles resident, said Souki reneged on a promise to cover any investment losses Parker suffered while holding 11 million shares in Tellurian between 2019 and 2021.
Souki believed there was a short-selling campaign against Tellurian's stock and convinced Parker not to sell his shares, according to the lawsuit. Souki promised a stock price rise when certain business prospects were realized, the lawsuit said.
Neither Tellurian nor Souki responded to a request for comment.
Parker said he began acquiring Tellurian shares in 2017 and traded as high as $20.47 per share. The stock had dropped to $5 per share by August of 2019.
The complaint said Souki was forced by his bank to sell tens of millions of shares to cover loans while he was telling Parker not to sell.
In a statement, Matthew L. Schwartz, a lawyer for Parker, said Charif Souki made a clear promise to Chris Parker that he broke, and that in retrospect he didn't intend to honor.