Unit Corporation Warrant Agreement Breach of Contract Case

Attorneys review the case details to decide whether to proceed with a class action.

W.D. Oklahoma

Court

5:26-cv-02290

Case number

09/03/2020

Class period Start

08/27/2026

Class period End

Warrant holders filed a claim against Unit Corporation for breaching the anti-dilution protections in its post-bankruptcy Warrant Agreement, while failing to disclose that it would pay dividends without adjusting warrant terms as the agreement required.
After emerging from chapter 11, Unit Corporation paid approximately $500 million in dividends to shareholders without seeking Bankruptcy Court approval to modify the Warrant Agreement, diluting the value of outstanding warrants in breach of their anti-dilution terms.
Warrant holders can join this case to be notified about potential recovery.
Case Details:

Unit Corporation, an Oklahoma-based oil and gas exploration and production company, emerged from chapter 11 bankruptcy under a confirmed plan of reorganization. 

As part of that plan, the Company issued warrants to certain creditors entitling them to purchase Unit Corp stock, with anti-dilution protections built into the Warrant Agreement to preserve the warrants' value against dilutive corporate actions taken after emergence.

Following its emergence from bankruptcy, Unit Corporation paid approximately $500 million in dividends to its shareholders. Under the terms of the Warrant Agreement, a dividend of this size should have triggered anti-dilution adjustments to the warrants' exercise price and/or share terms, protecting warrant holders from having their position diluted by cash leaving the company. 

Plaintiffs allege Unit Corporation made no such adjustment, and did so without seeking or obtaining Bankruptcy Court approval to modify the Warrant Agreement's terms, as required post-confirmation.

Based on these events, warrant holders filed a claim against Unit Corporation, alleging the Company:
Breached the Warrant Agreement by failing to apply the anti-dilution adjustments required when it paid approximately $500 million in dividends to shareholders
Modified the practical value of the warrants without the Bankruptcy Court approval required to alter terms of a confirmed chapter 11 plan
Diluted warrant holders' economic position in violation of protections they were expressly granted under the reorganization
Investors argue that Unit Corporation's dividend payments unlawfully diluted the value of their warrants in breach of the Warrant Agreement's express anti-dilution terms, and are seeking reformation of the agreement to restore those protections along with injunctive relief and damages.

Case Type

US Securities Class Action

Case Status

Attorney Investigation

Alleged Offence

Fraud,

Breach of Fiduciary duty

Suspected Party

Other

Security Type

Derivative (Futures, Option, SWAP)

Trade Direction

Long

Shock Event Date

08/27/2026

Filing date

08/27/2026