GenOn Shareholders Sue To Block $1.7B NRG Merger

Law360, New York (July 24, 2012, 8:12 PM EDT) -- Shareholders of GenOn Energy Inc. on Monday filed a proposed class action in Texas court seeking to block a $1.7 billion merger with NRG Energy Inc. that would create the nation's largest power producer, alleging that the deal comes at the expense of GenOn investors.

Lead plaintiff Christopher Akel alleges that the energy companies conspired to sell GenOn exclusively to NRG Energy at a “bargain basement” price in a deal that benefits the GenOn board, but hurts shareholders.

“The proposed acquisition is the product of a...
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