U.S. energy major EQT has agreed to a $167.5 million settlement in a class-action lawsuit, marking a significant development for corporate accountability and investor rights. The litigation stemmed from allegations that EQT had overstated the financial benefits of its substantial 2017 merger with Rice Energy, a transaction then valued at $6.7 billion.
The Merger and Investor Allegations
The 2017 acquisition of Rice Energy, EQT’s largest transaction to date at $6.7 billion, was anticipated to establish the combined entity as the United States’ foremost natural gas producer. While EQT currently ranks as the nation’s second-largest gas producer, underscoring the scale of operations connected to the merger, the lawsuit contended that the company had misrepresented the transaction’s projected advantages to investors. Among the plaintiffs were prominent institutional investors, including the Government of Guam Retirement Fund, the Eastern Atlantic States Carpenters Annuity Fund, Eastern Atlantic States Carpenters Pension Fund, and the Cambridge Retirement System.
A Landmark Settlement for Investor Rights
The $167.5 million cash settlement is particularly noteworthy within the legal community. Plaintiffs’ counsel highlighted it as the largest securities class action recovery in the history of the U.S. District Court for the Western District of Pennsylvania, and the 14th largest within the U.S. Court of Appeals for the Third Circuit. This magnitude reflects the serious nature of the claims regarding investor deception related to the merger’s anticipated financial benefits and operational synergies.
Concluding a Protracted Legal Battle
This resolution brings to a close nearly six years of litigation for the case titled In Re EQT Corporation Securities Litigation, which was originally filed in June 2019. The legal process involved three mediation sessions, underscoring the complexity and extended nature of the dispute. This outcome is considered highly favorable for class members, providing an immediate recovery and mitigating the substantial risk of receiving a considerably lower amount or no recovery at all. The settlement concludes a prolonged legal battle centered on the adequacy and accuracy of corporate disclosures.
David Thompson earned his MBA from the Wharton School and spent five years managing multi-million-dollar portfolios at a leading asset management firm. He now applies that hands-on investment expertise to his writing, offering practical strategies on portfolio diversification, risk management, and long-term wealth building.