American energy company EQT has agreed to pay $167.5m to settle a class action lawsuit filed by investors who alleged that the company overstated the benefits of its $6.7bn merger with Rice Energy in 2017.
This settlement was disclosed in a federal court filing on 31 October 2023, reported Reuters.
The plaintiffs in this case include the Government of Guam Retirement Fund, Eastern Atlantic States Carpenters Annuity Fund, Eastern Atlantic States Carpenters Pension Fund, and Cambridge Retirement System.
The focus of the lawsuit was on claims that EQT misrepresented the advantages of the merger, which aimed to position the company as the largest natural gas producer in the US.
The merger was a significant move for EQT as it sought to expand its gas business, making it the largest deal in the company's history.
According to the plaintiffs: “The recovery - $167.5min 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 district in question is the US District Court Western District of Pennsylvania, while the Third Circuit refers to the US Court of Appeals for the Third Circuit.
The settlement was reached after nearly six years of litigation and three mediation sessions.
The plaintiffs noted: “The settlement provides a favourable 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.”
The case is officially titled "In Re EQT Corporation Securities Litigation" and was filed in June 2019, as per the federal court website.
EQT officials were unavailable for comment.
In April 2025, EQT entered an agreement to purchase the upstream and midstream assets of Olympus Energy for $1.8bn.
This acquisition, which encompasses approximately 90,000 net acres and a production rate of 500 million cubic feet per day, is anticipated to substantially expand EQT's presence in south-west Pennsylvania.
