Lawsuit filed against Duke Energy
A lawsuit has been filed against Duke Energy.
Duke Energy could still need merger and acquisition advisors following its tie-up with Progress Energy, as Kessler Topaz Meltzer & Check has revealed the US District Court for the Eastern District of North Carolina has been given a class-action lawsuit on behalf of the individuals who acquired Duke's common stock.
It alleges that the company violated the Securities Act of 1933 and the Securities Exchange Act of 1934 by misrepresenting, neglecting to disclose or recklessly disregarding "material adverse facts", namely that James Rodgers would be the chief executive officer of the combined firm, rather than William Johnson.
Furthermore, it claims defendants had received Progress Energy's board of directors' approval of the combination without telling them that Mr Rodgers would lead Duke Energy after the merger.
Standard & Poor's also decided to downgrade the corporate credit rating of Duke Energy following the tie-up.
"The new Duke Energy has unmatched financial and operational scope and scale and the strength to manage through a time of transition in the utility industry," said Duke Energy chief financial officer Lynn Good.
Posted by Robert Shaw
Source; Kessler Topaz Meltzer & Check press release, July 25th