Kohner, Mann & Kailas, S.C., and Polsinelli PC, the law firms appointed to represent settlement Class Members in Wisconsin in certain wholesale natural gas anti-trust litigation (Class Members Counsel), announced two new settlements concerning the litigation

As background, Class Members Counsel stated, "The lawsuits allege that certain companies involved in the production, marketing, or sale of natural gas engaged in an unlawful conspiracy to manipulate the price of natural gas."

Class Members Counsel stated, "Plaintiffs further claim that commercial and industrial purchasers of natural gas who purchased natural gas other than from utilities or local distribution companies and for their own use or consumption in Wisconsin may recover for the effect that the alleged conspiracy had on the prices of the natural gas they purchased. Plaintiffs allege that, as a result of the unlawful conspiracy, they and other Wisconsin purchasers paid more for natural gas than they would have absent the conspiracy."

The Settling Defendants deny Plaintiffs' claims.

The Settlements include all industrial and commercial purchasers of natural gas for their own use or consumption during the period from January 1, 2000 through October 31, 2002 (the "Class Period"), and which gas was used or consumed by them in Wisconsin.

Excluded from the Class are (a) entities that purchased natural gas for resale (to the extent of such purchase for resale); (b) entities that purchased natural gas for generation of electricity for the purpose of sale (to the extent of such purchase for generation); (c) entities that purchased natural gas from entities that sold natural gas at rates approved by the Wisconsin Public Service Commission (to the extent of such purchases at such approved rates); (d) defendants and their predecessors, affiliates and subsidiaries; and (e) the federal government and its agencies.

This is the second notice in the case. See our prior story for details concerning an earlier settlement in the case with different defendants

Class Members Counsel stated, "The first notice involved settlements in Wisconsin, Kansas and Missouri with American Electric Power Company, Inc., and certain of its affiliates; Coral Energy Resources, LP, and certain of its affiliates; Duke Energy Carolinas, LLC, and certain of its affiliates; and ONEOK, Inc., and certain of its affiliates."

Class Members Counsel stated, "The Court has now approved two additional settlements, for natural gas purchases in Wisconsin only, with El Paso and CenterPoint, as defined below."

Class Members Counsel stated, "Settlements have been reached with Defendants El Paso LLC (f/k/a El Paso Corporation) and El Paso Marketing Company, L.L.C. (f/k/a El Paso Merchant Energy, L.P.) (collectively, 'El Paso'), and Defendant CenterPoint Energy Services, Inc. (f/k/a Reliant Energy Retail, Inc.) ('CenterPoint') (El Paso and CenterPoint are, collectively, the 'Settling Defendants')."

The Settlements create a total settlement fund of $29.25 million in cash, plus any interest accrued (the "Settlement Fund"), before deductions for Court-approved expenses and attorneys' fees.

Class Members Counsel will ask the Court for reimbursement from the Settlement Fund of a portion of their costs and expenses incurred to date. Class Members Counsel will also ask the Court to award attorneys' fees not to exceed thirty-five percent (35%) of the remaining Settlement Fund after any fees and expenses are reimbursed. In addition, up to $200,000 in administration fees will be paid from the Settlement Fund to the claims administrator that will assist with the processing of notices, requests for exclusion, and other settlement-related tasks. Additional amounts may be paid to the claims administrator to assist with the processing of claims in the event the Court finally approves these settlements. Class Members Counsel may also request that an amount be paid from the Settlement Fund to each of the Class Representatives who helped the lawyers pursue these claims on behalf of all members of the Class (known as an "incentive award"). The Court will ultimately approve the amount of attorneys' fees, costs and expenses, and any incentive awards.

Tags:
Wisconsin   Natural gas   Litigation  

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