Dive Brief:

• Duke Energy has reached a nearly $150 million agreement to settle a shareholder lawsuit linked to the 2012 merger of Duke and Progress Energy.
• The agreement, subject to court approval, would end a class action lawsuit brought by certain Duke Energy shareholders alleging that the company, its executives, and certain members of the board misrepresented who would lead a post-merger Duke Energy. 
• As part of the agreement, Duke and the named executives and directors denied the allegations and any wrongdoing.

Dive Insight:

This settlement ends the class action lawsuit over alleged misrepresentation related to Duke's post-merger CEO change.

Within a day of the merger's completion in 2012, the board ousted new CEO Bill Johnson, who had been expected to lead the combined company. Shareholders filed suit, believing they had been misled and that the decision would have financial implications.

The $146 million settlement is subject to approval by the U.S. District Court for the Western District of North Carolina in Charlotte. Duke denied any wrongdoing, but said the settlement would avoid the cost of prolonged litigation and eliminate uncertainty for the company related to the lawsuit.

Duke Energy said insurance coverage will apply to most of the settlement amount. Company shareholders, not customers, would pay the remaining portion. Previously, the company recorded a $26-million reserve for the estimated portion not covered by insurance.