US energy firm EQT agrees to settle lawsuit for $167.5 million

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(Reuters) -U.S. energy company EQT agreed to pay $167.5 million to settle a class action lawsuit filed by investors who claimed EQT overstated the benefits of its $6.7 billion merger with Rice Energy in 2017, according to a federal court filing on Thursday by the plaintiffs.

Officials at EQT were not immediately available for comment.

Plaintiffs in the case include the Government of Guam Retirement Fund, Eastern Atlantic States Carpenters Annuity Fund, Eastern Atlantic States Carpenters Pension Fund and Cambridge Retirement System.

WHY IT’S IMPORTANT

When the deal was announced in 2017, it was expected to create the biggest natural gas producer in the U.S. and was the biggest deal ever for EQT as it looked to expand its gas business. EQT is currently the No. 2 gas producer in the country.

“The recovery – $167.5 million in cash – is notable as it is (by far) the largest securities class action recovery ever in the history of this District and the 14th largest in the history of the Third Circuit,” the plaintiffs said in a filing.

The district is the U.S. District Court Western District of Pennsylvania. The Third Circuit is the U.S. Court of Appeals for the Third Circuit.

The plaintiffs said in the filing that they reached the settlement after almost six years of litigation and three mediation sessions.

“The Settlement provides a favorable result for Class Members because it allows for an immediate recovery and removes the considerable possibility that Class Members could recover significantly less or even nothing,” according to the filing.

The case is In Re EQT Corporation Securities Litigation filed in June 2019, according to the federal court website.

(Reporting by Scott DiSavinoEditing by Marguerita Choy)