Lawsuits

Rep. Darrell Issa (R-CA) on Tuesday introduced legislation that would bar federal court review of lawsuits that he estimates could deprive the federal government of billions of dollars in royalties.

Reliant Energy has agreed to pay $68 million, and its accounting firm, Deloitte & Touche, agreed to pay $7 million to settle class action lawsuits by former Reliant shareholders who alleged that the companies failed to disclose in documents related to Reliant’s initial public offering (IPO) in April 2001 that it engaged in round-trip energy trading in an effort to exaggerate its revenues and trading volumes.

Dynegy Inc.’s share price inched up on Friday following news that it had settled all of the shareholder class action litigation brought against the company between June 2001 and July 2002. The settlement could pave the way for a possible sale or merger of the company, which has been rumored to be in the works for several weeks.

On its second go-round the District of Columbia Court of Appeals last Tuesday dismissed lawsuits that sought to force Vice President Dick Cheney to turn over records and documents disclosing the names of energy companies and attending task force deliberations that crafted the 2001 national energy policy.

On its second go-round the District of Columbia Court of Appeals Tuesday dismissed lawsuits that sought to force Vice President Dick Cheney to turn over records and documents disclosing the names of energy companies and lobbyists participating in task force deliberations that crafted the 2001 national energy policy.

In its lawsuit, Allegheny Energy has asked the New York Supreme Court, where the complaint was filed, to rescind the purchase agreement, in effect reversing the transaction, and require Merrill Lynch to give it back money that it paid to purchase GEM. Allegheny Energy also wants the investment firm to pay punitive and compensatory damages of at least $475 million.

Enron Corp. has put 12 major energy assets, including Portland General Electric, Transwestern Pipeline, Northern Plains, Citrus Corp. and many other international assets, which make up nearly all of what is left of the company, formally on the auction block. The company has extended invitations to potential bidders to visit electronic data rooms containing information about its most valuable businesses and has executed confidentiality agreements.

Enron Corp.’s former outside accountant Arthur Andersen and the accounting firm’s law firm are apparently close to completing an internal review into when and how its employees destroyed documents relating to the bankrupt company’s business practices. Details of the report by Davis Polk & Wardwell could be released this week, but Andersen also indicated that its investigation is ongoing.

Northern Illinois Gas Co. (Nicor Gas) has agreed to pay nearly $4.1 million for its role in mercury leaks and improper disposal over a 10-year period of some of its gas regulators that were replaced by the utility in its service area. The agreement, approved by Cook County Circuit Court Judge Paul P. Biebel, was reached on Wednesday between Nicor Gas and the Illinois attorney general and the state’s attorneys of Cook, DuPage and Will counties.