True, however after the lawsuit was dismissed for no wrong doing, I see "No SEC Investigations For Wrong Doing". Routine requests for documents does not mean they have done anything wrong.
The folowing taken from the latest 10Q, they are not being investigated for any wrong doing. Also many companies from time to time get requests from the SEC to provide certain documents. Complaints often come to the SEC in regards to a companies practice, especially from those who have a certain agenda.
Litigation
On October 29, 2018, Zion received a shareholder request to inspect books and records pursuant to Section 220 of the Delaware General Corporation Law for the purpose of investigating potential corporate mismanagement and alleged breaches of fiduciary duty in connection with public statements made by the Company from March 12, 2018 to May 30, 2018. The Company responded to this request.
On August 9, 2019, Zion received two (2) additional shareholder requests from the same law firm to inspect books and records pursuant to section 220 of the Delaware General Corporation Law for the purpose of investigating potential corporate mismanagement and alleged breaches of fiduciary duty in connection with public statements made by the Company from February 1, 2018 to present. Following discussion with counsel to the shareholder, the Company’s counsel produced materials responsive to the shareholders’ request in January 2020.
On February 12, 2020, by letter to Zion’s Board of Directors, one of the shareholders making the August 9, 2019 request demanded that the Board investigate, address, remedy, and commence proceedings against certain of the Company’s current and former officers and directors for alleged breaches of fiduciary duties, violations of section 10(b) and 20(a) of the Exchange Act, waste of corporate assets, unjust enrichment, and violations of all other applicable laws. The shareholder alleges wrongdoing in connection with public statements made by the Company from February 1, 2018 regarding the Company’s oil and gas exploration activities, the Company’s accounting and disclosure of expenses, and the Board’s oversight of operations. The Board hired independent counsel to investigate the claims made against certain of the Company’s current and former officers and directors. That investigation concluded and based on the findings and recommendations of independent counsel, the Board decided not to pursue claims against any current or former officer or director. On July 14, 2020, Zion received a request from the same shareholder making the February 12, 2020 demand to inspect books and records pursuant to Section 220 of the Delaware General Corporation Law for the purpose of evaluating the Board’s decision to reject the litigation demand. The Company responded to this request in August 2020. The Company has not received any further communication from the shareholder following the August 2020 response.
From time to time, the Company may be subject to routine litigation, claims or disputes in the ordinary course of business. The Company defends itself vigorously in all such matters. However, we cannot predict the outcome or effect of any of the potential litigation, claims or disputes.
The Company is not subject to any litigation at the present time.
"Just as the consolidated derivative suit in Federal district court in Delaware was dismissed last November, the securities class action suit previously filed against Zion, Victor Carrillo, and Mike Croswell, in the Northern District of Texas has now been dismissed," stated Zion's President, Bill Avery. "Zion is thankful that these lawsuits have been dismissed so that we can focus on moving ahead with our oil exploration in Israel without distraction." https://www.prnewswire.com/news-releases/all-lawsuits-against-zion-oil--gas-have-now-been-dismissed-301033335.html
My thoughts,
There are no formal lawsuits filed and I don't see any pending at this time. Zion Oil appears to be in full cooperation with the SEC and that gives me confidence in my investment. However, if you are concerned about the past and present operation of Zion Oil and it seems to make you uncomfortable with your investment, why not contact the company and have this discussion. If no remedy you are not held hostage to this investment. Just my opinion and GLTY
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