Duke Energy Corp (NYSE:DUK) Investor Files Lawsuit Against Directors Over Alleged Breaches Of Fiduciary Duties Following Merger Between Duke Energy and Progress Energy
July 20, 2012 (Shareholders Foundation) -- An investor, who currently holds NYSE:DUK shares, filed a lawsuit against directors of Duke Energy (NYSE:DUK) over alleged breaches of fiduciary duties in connection with the surprising resignation of the former CEO of Progress Energy following the merger between Progress Energy, Inc and Duke Energy.
The plaintiff alleges that Duke Energy crippled its credibility and its business prospects after former Ptrogress Energy Inc CEO surprisingly announced his resignation following the merger between Progress Energy, Inc and Duke Energy
The merger between Duke Energy and Progress Energy was announced in January 2011. Under the merger agreement, Progress Energy’s shareholders received common stock of Duke Energy in exchange for each share of Progress Energy common stock. It was planned that the former chairman and CEO of Progress Energy, Inc would take over as president and CEO of the combined companies.
However on July 3, 2012, Duke Energy announced that the former chairman and CEO of Progress Energy, Inc resigned and the Duke Energy Chairman and CEO, who was supposed to be chairman after the merger, was asked by the board to continue as CEO. A former Progress Energy director said that the Progress Energy board of directors had been misled prior to the merger.
July 5, 2012, the North Carolina Attorney General and the North Carolina Utilities Commission launched investigations into whether Duke Energy misled regulators prior to approval of the merger.


