PORTLAND, Ore. (Legal Newsline) – The firm Grant & Eisenhofer has asked for final approval of a class action settlement between Portland General Electric and its shareholders.
On Jan. 14, the firm, which is serving as lead counsel, filed a motion for final approval of the $6.75 million settlement fund that will pay class members who submit valid proofs of claim. The case is being handled in U.S. District Court for the District of Oregon.
“This amount is an excellent recovery for the class, especially in light of the risks of continued litigation and trial,” the motion says.
The motion seeks nearly $1.7 million in fees – 25% of the net settlement after deduction of expenses – plus an award of expenses of $86,788.
Grant & Eisenhofer represented the Public Employees’ Retirement System of Mississippi, which filed its case Nov. 2.
PGE announced a $128 million loss on Aug. 24 while placing two unnamed employees on administrative leave and creating a committee to review its energy trading practices. The news caused its stock price to fall by nearly 8% and wiped out more than $300 million in shareholder value, the lawsuit alleges.
“The surprise announcement of a nine-figure loss arising from a business segment that investors did not know even existed other than to hedge and manage risk stunned the markets and decimated PGE’s stock price, which fell by nearly 8% on unusually heavy volume as a result of the announcement,” the suit says.
“The stock’s decline wiped out over $300 million in shareholder value.”