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Elliott Accused of Withholding Millions in Oil Deal
5 Feb
Summary
- Elliott faces lawsuit over withheld tens of millions of dollars.
- The dispute centers on proceeds from oil and gas asset sales.
- Elliott claims sole discretion over fund distribution timing.
Paul Singer's Elliott Investment Management is facing a lawsuit from Texas-based Stronghold Investment Management, alleging the withholding of tens of millions of dollars. The funds in question are proceeds from the sale of oil and gas assets.
Elliott has argued in Delaware Chancery Court that it possesses sole discretion over the timing of these distributions. Attorneys for Elliott stated that they are in the process of winding down complex entities after major asset sales and are evaluating appropriate reserves and distribution timelines.
The dispute originated from a partnership formed in 2017 to acquire and divest oil, gas, and mineral interests. The relationship deteriorated in 2022, leading to a settlement where Stronghold agreed to liquidate two partnerships. However, further legal actions arose, with Elliott suing Stronghold in September 2025 over alleged excessive expenses and failure to liquidate assets, claims that Stronghold denied.
Stronghold's current lawsuit concerns different investment vehicles for royalty-generating assets identified and purchased by the Texas firm. Elliott assumed management control of three "acquisition vehicles" named Ford, Pontiac, and Mercury as part of the 2022 settlement. Stronghold claims Elliott has not disbursed its share of hundreds of millions of dollars from a sale in early 2025, alleging a lack of good faith basis for withholding the funds.
