US energy company EQT settles lawsuit for $167.5 Million

According to a filing made by plaintiffs in federal court on Thursday, U.S. Energy Company EQT has agreed to pay $167.5 Million to settle a lawsuit brought by investors who alleged that EQT had overstated its benefits from its $6.7 Billion merger with Rice Energy.

Officials from EQT did not respond to a request for comment immediately.

The case includes the Eastern Atlantic States Carpenters Annuity Fund (the plaintiff), the Eastern Atlantic States Carpenters Pension Fund (the defendant) and the Cambridge Retirement System.

Why it's important

The deal announced in 2017 was expected to create the largest natural gas producer in America and the biggest deal for EQT ever as it sought to expand its gas businesses. EQT currently ranks No. EQT is currently the No.

The plaintiffs stated in a court filing that the recovery of $167.5m in cash was notable because it was (by far) largest securities class-action recovery in the district's history and the 14th biggest in the Third Circuit's history.

The U.S. District Court Western District is located in Pennsylvania. Third Circuit is also known as the U.S. Court of Appeals, Third Circuit.

In their filing, the plaintiffs stated that the settlement was reached after nearly six years of litigation as well as three mediation sessions.

According to the filing, "the Settlement provides a positive result for class members because it allows an immediate recovery. It also eliminates the possibility that they could receive significantly less money or nothing at all."

According to the website of the Federal Court, In Re EQT Corporation Securities Litigation was filed in June 2019.

(source: Reuters)