A law office recently noted that a class action lawsuit was filed against an energy company due to its merger agreement with another firm.
Rigrodsky and Long, P.A., noted that the lawsuit was filed in the Delaware Court of Chancery against the leaders at El Paso Pipeline Partners, L.P. This was due to the company's deal with El Paso Corporation for $745 million.
The agreement would give Colorado Interstate Gas a 28 percent interest in the company and a 15 percent interest in Southern Natural Gas Company. The parent company is considered to be El Paso LLC, formerly known as El Paso Corporation.
The merger may have a conflict of interest of both the public shareholders and El Paso Pipeline Partners. There also may be an issue of El Paso Corporation and El Paso Pipeline GP Company, LLC. Additionally, the two El Paso companies and Colorado Interstate Gas and Southern Natural Gas Company also have issues related to conflicts.
Further allegations includes that the actions in the proposed transaction included El Paso Pipeline GP company potentially not acting in good faith in the situation by approving the deal.
Shareholders may have the ability to take part as a lead plaintiff, and should send any inquiries to the court. This is not a mandatory action, and it is possible for shareholders to take no action and remain absent class members. The decision will still allow them to collect in the event of a financial return.
It is an option for shareholders who acquired interests in El Paso Pipeline Partners before June 29, 2011 to learn more about the lawsuit from the litigation firm. The best people to contact are either Seth Rigrodsky or Gina Serra. They can be reached by mail, telephone or email, while the law office's website has more information.
Separate investigation begins
Another law office noted that it was investigating parts of the agreement involving El Paso Corporation. This also may become a securities class action lawsuit in the future.
Wohl and Fruchter noted that it started an investigation due to El Paso Pipeline Partners purchasing a 25 percent share of Southern Natural Gas due to the potential for conflicts of interests.
It is possible for shareholders to contact the law firm by email or telephone to learn more about the investigation.