Biblical Oil Firm Hid Investigation, Faces Shareholder Suit

An oil and gas firm that draws inspiration from Bible verses when selecting where in Israel to drill faces a shareholder derivative suit accusing it of hiding an SEC investigation.

Zion Oil & Gas Inc.'s officers and directors misled shareholders for months about the existence of a Securities and Exchange Commission investigation, according to a Nov. 21 complaint. The SEC investigation began in March, but the company denied it to investors until July, the complaint said.

Zion has drilled at least five wells in Israel in the past two decades, but hasn’t produced any oil or revenue, according to ...