Summary
Duke Energy Corporation (DUK) has announced a settlement agreement in a class action lawsuit, Anthony Williams et al. v. Duke Energy Corp. et al., for approximately $81 million. This settlement resolves allegations that a former subsidiary, Duke Energy Retail Sales, LLC, provided preferential financial benefits through contracts to certain industrial and business customers, thereby violating antitrust and other laws. The company and Duke Energy Ohio deny the allegations but have agreed to settle to avoid the costs and uncertainties associated with continued litigation. The $81 million settlement amount will be funded by shareholder funds, meaning no additional charges will impact the company's earnings as the full amount was previously recognized as a pre-tax charge. The funds will be allocated to Duke Energy Ohio's residential and non-residential customers from the period January 1, 2005, to December 31, 2008, with a portion also designated for energy-related programs. The settlement is subject to court approval.
Key Highlights
- 1Duke Energy and Duke Energy Ohio reached a settlement in a class action lawsuit for approximately $81 million.
- 2The lawsuit alleged that contracts from a former subsidiary provided preferential financial benefits to certain large customers, violating antitrust and other laws.
- 3The settlement amount is paid from shareholder funds, and no additional charges will be recognized by the company as the full amount was previously accounted for.
- 4The settlement proceeds will be distributed to Duke Energy Ohio's residential and non-residential customers who were active between January 1, 2005, and December 31, 2008.
- 5A portion of the settlement funds will also support energy-related programs benefiting eligible customers.
- 6The settlement agreement is pending approval from the U.S. District Court for the Southern District of Ohio.