America's largest electric company is settling a lawsuit that claimed shareholders lost millions of dollars when Duke Energy surprised investors by ousting its CEO hours after completing a long-anticipated buyout of its smaller neighbor.
Charlotte-based Duke Energy said Tuesday that it is settling for $146 million and that its insurers would cover most of the cost, with shareholders instead of customers paying the rest. The company set aside $26 million for the amount not covered by insurance.
Continue Reading Below
The lawsuit said shareholders suffered when Duke Energy directors suddenly fired the new chief executive in July 2012 after wrapping up a buyout of Raleigh-based Progress Energy Inc. Progress Energy CEO Bill Johnson was supposed to lead the combined company.
Duke Energy has more than 7 million customers in the Carolinas, Ohio, Kentucky, Indiana and Florida.