CVO Holders Hit Progress Energy With $42M Fraud Suit

Law360, New York (August 11, 2011, 8:19 PM EDT) -- Progress Energy Inc. was accused Tuesday in New York of stiffing holders of its contingent value obligations some $42 million by adopting an improper tax position in 2005, in violation of an agreement related to an earlier merger.

M.H. Davidson & Co. and Davidson Kempner International Ltd. accuse Progress of breaching its obligation to good faith dealing by taking a certain tax position for the sole purpose of withholding profits from CVO holders.

A representative for Progress declined to comment Thursday.

The defendant distributed the CVOs...
To view the full article, register now.

Documents

Related

Sections

Case Information

Case Title

M.H. Davidson & Co. et al v. Progress Energy, Inc. et al


Case Number

1:11-cv-05520

Court

New York Southern

Nature of Suit

Contract: Other

Judge

Colleen McMahon

Date Filed

August 9, 2011

Law Firms

Companies

Government Agencies

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.