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Lufkin says investigation did not reveal breach of duties

Lufkin (LUFK) disclosed last night that its investigation did not reveal any breach of fiduciary duties committed by the board. The company's committee determined that the allegations made in the letters have little likelihood of success and that, accordingly, the pursuit of any of the allegations in the letters would not be in the best interest of the company and its shareholders. After review of the committee’s presentation, Lufkin said its board accepted all of the committee’s recommendations and determined that the allegations made in the letters will not be pursued. As previously disclosed, Lufkin received two letters from purported shareholders alleging that the members of the company’s board breached their fiduciary duties in approving the merger with General Electric (GE).