Regency Energy Partners LP Board Under Investigation Over Possible Breach of Fiduciary Duty

If you currently hold units of Regency Energy Partners LP (NASDAQ:RGNC), you have certain options and you should contact the Shareholders Foundation, Inc.

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Company Name(s): 
Regency Energy Partners
Affected Securities: 

An investigation on behalf of current investors in Regency Energy Partners LP (NASDAQ:RGNC) concerning shareholder claims over possible breaches of fiduciary duty by the board of directors of Regency Energy Partners LP was announced.

The investigation by law firm focuses on potential breaches of fiduciary duty and other violations of state law by the Board of Directors of Regency Energy Partners LP (Public, NASDAQ:RGNC) by entering into agreements. Regency Energy Partners LP, located in Dallas, Texas, is engaged in the gathering, processing, contract compression and transportation of natural gas, and natural gas liquids. Regency Energy Partners LP reported in 2007 Total Revenue of $1.19024billion, in 2008 $1.8638billion, and in 2009 $1.0895billion.

On Tuesday, May 11, 2010, Regency Energy Partners LP (Nasdaq: RGNC) announced that Energy Transfer Equity, L.P. (NYSE: ETE) will acquire the general partner interest in Regency Energy Partners LP from an affiliate of GE Energy Financial Services, a unit of GE (NYSE: GE). Energy Transfer Equity, L.P. will acquire a 100% interest in Energy Partners LP's general partner from an affiliate of GE Energy Financial Services for ETE preferred units with a value of approximately $300 million. Additionally, Regency Energy Partners LP announced that it will acquire a 49.9% ownership interest in the Midcontinent Express Pipeline, a natural gas pipeline with approximately 500 miles of pipeline, from Energy Transfer Equity, L.P. Regency Energy Partners LP and Energy Transfer Partners will operate as separate entities, both with publicly traded limited partner units. Energy Transfer Equity, L.P will hold 22% of Regency's common units after giving effect to the transaction. Shares of Regency Energy Partners LP (RGNC) traded recently at $23.30 per share, down from over $30 per share in 2008.

The investigation by a law firm “concerns whether the Company's directors and officers breached their fiduciary duty to unit holders and Regency by entering into this transaction” and “whether the transaction is in Regency's best interests, rather than simply the best interests of its general partner.”