Northeast Utilities Co. has reached an agreement in principle with its shareholders who had claimed that certain NU trustees and officers had failed to manage prudently the affairs of the utility, causing problems for its nuclear power program.
The settlement calls for insurers of those trustees and officers named in the suit to pay NU $25 million, less attorney's fees. NU has agreed to certain corporate governance changes. The agreement was reached after more than eight months of mediation by retired U.S. District Judge Robert C. Zampano and Professor Leonard Orland of the University of Connecticut School of Law.
They endorse the proposal and will recommend its approval to the U.S. District Court for Connecticut. The agreement does not affect several potential class action lawsuits filed against NU by other shareholders claiming lack of disclosure in regulatory filings. The shareholders had filed seven lawsuits against the utility. t
Lori A. Burkhart is an associate legal editor with PUBLIC UTILITIES FORTNIGHTLY.
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