Duke Energy settles lawsuit linked to 2012 Duke-Progress merger

Sponsored by

Duke Energy has reached an agreement to settle a shareholder lawsuit linked to the 2012 merger of Duke Energy and Progress Energy for about $146 million, the company said.

The agreement, subject to approval by the U.S. District Court for the Western District of North Carolina in Charlotte, would end a class action lawsuit (Nieman v. Duke Energy Corp., et al.) brought by certain Duke Energy shareholders who alleged that Duke Energy Corp., certain Duke Energy executives and certain members of Duke Energy's board of directors made misrepresentations related to a post-merger CEO change.

Duke Energy and the named executives and directors denied the allegations and any wrongdoing, as part of the agreement.

The settlement would avoid the cost of prolonged litigation and eliminate uncertainty for the company related to the lawsuit, the company said.

Duke Energy maintains insurance coverage that would apply to most of the settlement amount. Company shareholders, not customers, would pay the remaining portion. Previously, the company recorded a $26-million reserve for the estimated portion not covered by insurance.

The agreement covers shareholders "who purchased or acquired shares of Duke common stock between June 11, 2012 and July 9, 2012, inclusive, including former Progress shareholders who acquired shares of Duke common stock directly in the merger of Duke and Progress."

Sponsored by

Get All the Electric Light & Power and POWERGRID International to Your Inbox

Subscribe to Electric Light & Power or POWERGRID International and the email newsletter today at no cost and receive the latest news and information.

Related Articles

U.S. solar market tops 10 GW in 2018, again

03/14/2019 For the third year in a row, the U.S. solar industry installed double-digit gigawatts (GW) of solar PV capacity, with 10.6...

FERC issues preliminary permit to study 1,200-MW Southeast Oklahoma Pumped Storage project

03/04/2019

The Federal Energy Regulatory Commission has issued a preliminary permit to Southeast Oklahoma Power Corporation to study ...

Residential PV + batteries as wholesale energy market suppliers are just the ‘tip of the spear’

02/19/2019 Last week, Sunrun announced that its bid to supply 20 MW of residential solar + storage capacity into the New England ISO ...

Be careful when relying on insurance coverage to contain utilities’ wildfire risks

02/19/2019 The recent wildfires in California have been devastating to life and property. Plaintiffs that lost property are attributi...