Former CEO of Pioneer Natural Resources Sues FTC

Scott Sheffield, former CEO of Pioneer Natural Resources, has filed a lawsuit against the U.S. Federal Trade Commission (FTC), alleging that the agency acted unlawfully in preventing him from joining Exxon Mobil’s board of directors. The dispute stems from Exxon’s $59.5 billion acquisition of Pioneer in 2024, one of the largest oil industry deals in recent years.

According to Reuters, the lawsuit, filed in Fort Worth, Texas, challenges an FTC order from May 2024, which prohibited Sheffield’s inclusion on Exxon’s board. The FTC had conditioned its decision to allow the merger to proceed on Sheffield’s exclusion, accusing him of alleged attempts to coordinate with members of the Organization of the Petroleum Exporting Countries (OPEC). Sheffield, however, has categorically denied these allegations.

In his legal filing, Sheffield argued that the FTC overstepped its authority and violated his constitutional right to due process by issuing the order. He is seeking to have the restriction overturned, claiming that the agency’s actions were both legally and procedurally improper.

Read more: Exxon Mobil to Lay Off Nearly 400 Employees in Texas Following Merger

Per Reuters, the FTC’s decision was not without internal dissent. Andrew Ferguson, then one of two Republican commissioners on the five-member agency, voted against the order. Ferguson’s opposition highlighted the contentious nature of the FTC’s approach to regulating the merger, which was one of the most closely watched transactions in the energy sector.

The FTC’s concerns reportedly centered on Sheffield’s past interactions with OPEC, though details of the allegations have not been publicly disclosed. While the agency did not ultimately block the Exxon-Pioneer merger, its conditions have sparked a broader debate about the FTC’s authority in overseeing corporate governance as part of antitrust reviews.

Source: Reuters